Churchill Asset Management closed its oversubscribed Junior Capital Opportunities Fund II with $737 million in LP commitments, handily exceeding its original target of $500 million.
The fund raised well more than its predecessor offering, which closed with $300 million in 2019.
The strategy is an unlevered fund that invests in junior debt provided to private equity sponsor-backed U.S. middle market companies. It also included a $65 million rated note, which was geared to meet the needs of insurance company investors.
“We are very proud to build upon Churchill’s successful middle market junior capital strategy with our latest offering,” said Jason Strife, senior managing director, head of junior capital and private equity solutions at Churchill. “Despite uncertain market conditions, our differentiated deal sourcing approach, flexible junior capital mandate, proven track record and alignment with parent company TIAA continues to resonate with investors and set us apart in the industry.”
Strife heads a team of 20 investment professionals who invest roughly $4 billion annually across junior capital, equity co-investments, secondaries and private equity fund commitments.
Over the last decade the team has funded over $5 billion across nearly 200 junior capital transactions and now deploys more than $1 billion of junior capital per year, officials said.