HIG Capital closes credit fund on $1.1bn

Total capital commitments have reached $1.1bn, exceeding the $1bn target. 

Fundraising began around six months ago, Bayside managing director Appu Mundassery told unquote". "We raise pools of capital fairly consistently, so this was not an opportunistic fundraise," he added.

Bayside Capital is the credit arm of HIG. It has approximately $4.5bn under management and invests across the primary and secondary debt capital markets. The investor recently committed €45m of fresh debt in the refinancing of Belgian concrete manufacturer Consolis.

Investors
"We have a lot of existing LP relationships," Mundassery said. "They were very supportive in this fund as well. But it was important for us to broaden the investor base and include more European LPs." 

The fund is evenly split between new and existing backers. The majority of European LPs in the fund were new backers.  

Investments
The vehicle will invest in debt obligations of small- and medium-sized companies, existing loans acquired on the secondary markets and new primary loans. The vehicle has a European remit and will target distressed and stressed companies.

"We had done things on a global basis up until now and allocation to different countries was fairly random," Mundassery explained. "This way we have dedicated a pool to European opportunities."

Though the fund is pan-European, locations where the firm has a direct presence will be the initial target of the fund.

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