Adams Street Partners, a US-based private markets investment management firm, has raised $1.1 billion for its first private credit fund, it said in a statement.
The credit fund received commitments from new and existing investors in the US, Europe and Asia. These include public and corporate pension plans, insurance companies, foundations, family offices and wealthy individuals.
Adams Street, which has $37 billion in assets under management, said its private credit fund will invest in middle-market companies through a variety of transactions including mezzanine debt and preferred equity.
The fund’s investment team consists of 10 professionals, Adams Street said, adding that it has deployed about $500 million across 22 investments since the launch of the private credit strategy in 2016.
“Our experience investing across cycles and our focus on capital preservation has resonated with investors looking to generate attractive risk-adjusted returns,” said Bill Sacher, partner and head of private credit at Adams Street.
Adams Street is one of many private investment firms that are entering or expanding their credit business. Blackstone, Baring PE Asia, KKR and Bain Capital are among the private equity firms that are betting big on this segment.
Adams Street also said its credit team will have access to a differentiated and proprietary sponsor-backed deal flow.
“Our flexible approach and ability to offer customized financing solutions combined with our long history in the private equity industry makes us a natural partner for our private equity sponsors,” said Shahab Rashid, partner and co-founder of private credit.
Adam Street focusses on primary fund investments in India, as VCCircle reported earlier this month. The firm is also looking into the possibility of enhancing its commitment to the venture capital segment.