Churchill Asset Management closed its second collateralized fund obligation (CFO) totaling $190 million.
The CFO will invest across flagship strategies of Churchill and Arcmont Asset Management, the operating businesses of Nuveen Private Capital. This includes U.S. senior lending, junior capital and equity co-investment, as well as European direct lending and capital solutions. The asset raise follows the closing of Churchill’s inaugural $700 million CFO in July 2022.
The $47 billion Churchill is known for its work in providing customizing financing solutions to private equity firms and their U.S. portfolio companies. Nuveen Private Capital was formed in March 2023 when Nuveen acquired London-based Arcmont, which in combination with Churchill has created a $74 billion private capital platform and one of the world’s largest private credit managers.
Allocations for the second CFO were strategically selected to meet key investor objectives including significant credit exposure and strategy diversification, officials said. Compared to precedent structures, this CFO will be majority senior lending focused, while also maintaining strong alignment with Nuveen Private Capital’s ultimate parent company, TIAA.
“We are also humbled by the outstanding support we received from existing and new investors,” Christopher Freeze, senior managing director and head of investor relations at Churchill, said in a statement. “In particular, we saw significant interest from insurance companies and other investors focused on investment grade rated debt, given the capital efficient nature of the transaction, and we look forward to continuing to innovate to meet their needs.”
GreensLedge served as the sole structuring advisor and bookrunner of the transaction, while Dechert served as legal advisor to Churchill.