Tosca holds final close for second fund on £237.6m

The GP launched the vehicle in September 2017 and held a first close on £96m on 16 October.

The vehicle is a more than twice the size of its predecessor, Tosca Debt Capital Fund I, which was launched in September 2016 with a target of £110m and closed on just less than £100m.

Fund I is now fully invested and all of the institutional investors have re-upped into Fund II. The first vehicle has begun generating returns after making two exits and is currently recording an IRR in the high-teens, unquote" understands.

The new fund has a six-year life and a three-year investment period, and has already deployed £68m across four deals since the first close. Alex Amos of Macfarlanes provided legal advice to the fund.

Investors
New LPs in the fund included British Business Investments, the commercial arm of the British Business Bank, and Strathclyde Pension Fund. All LPs are UK-based investors.

Investments
The vehicle will provide loans to UK-based SMEs with an average investment size of £15m. It targets a 50-50 split of sponsored to sponsorless deals and will invest across the whole of the UK, although it will have a specific focus on the Manchester region where the manager is based. It will use bullet structures and prefers to take second lien positions where there is a relationship with the clearing bank.

People
Tosca Debt Capital – Gary Davison, Richard Williams (partners).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Funds
• Debt
• UK / Ireland
• United Kingdom