Park Square Capital Partners IV closes on €1.8bn

Alessia Argentieri
06 May 2021

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Park Square Capital has held a final close for its fourth subordinated debt fund, Park Square Capital Partners IV (PSCP IV), on тЌ1.8bn, surpassing its тЌ1.5bn initial target.

Including committed leverage, the strategy's total investable capital amounts to €2.2bn.

The fund is around 50% larger than its predecessor, PSCP III, which held a final close on €1.2bn in April 2016, exceeding its €1bn target. The vehicle was able to use leverage of up to €300m, raising its total capital to €1.5bn.

Park Square is a private credit provider with multi-product packages across mid-market direct lending, large senior credit and junior debt.

Since its inception in 2004, the firm has invested more than $18bn in senior and subordinated debt across Europe and the US. Today the firm manages around $10bn in capital and has a team of 100 people based in London, New York, Luxembourg, Paris, Frankfurt and Seoul.

In addition to its Park Square Capital Partners strategy, focused on subordinated debt and secondary investments in both performing credit and stressed debt, the firm also invests via Park Square Credit Opportunities, which is dedicated to primary senior secured loans and discounted secondary investments in large companies, and Park Square Loan Partners, which takes sole or lead lender positions in small to medium-sized European businesses, focusing on senior and unitranche debt.

Investors
PSCP IV attracted a broad mix of institutional investors by type and geography, including commitments from sovereign wealth funds, pension funds, insurance companies and family offices across Europe, the US and Asia.

Investments
PSCP IV invests in primary and secondary subordinated debt in both performing credit and dislocated debt. It provides financing as a long-term partner of private equity firms, targeting companies across Europe and the US.

The fund takes a flexible approach that enables Park Square to invest across market cycles, alternating between new transactions in normal market conditions and dislocated debt during periods of market volatility.

The vehicle follows a selective approach and undertakes extensive due diligence. It prioritises conservative structures and robust loan documentation for each investment and is typically involved in the deal process early on as a lead arranger.

People
Park Square Capital – Robin Doumar (managing partner).