The FrontPoint-SJC Direct Lending Fund (FSJC) has held its final close with total commitments of more than USD1 billion.
The fund’s strategy focuses on providing privately negotiated senior secured loans to US middle market companies that generate annual revenue of USD75-USD500 million and annual EBITDA of USD7.5-USD50 million. To date, the Fund has invested approximately USD165 million.
"US middle-market businesses have been left with relatively few financing sources as numerous middle market direct lenders have either exited the direct lending business or are gravitating towards larger borrowers for both strategic and regulatory reasons," says Steve Czech (pictured), FSJC Founder and Portfolio Manager. "FSJC plans to fill that void for creditworthy businesses in need of secured debt that is required to expand their businesses and increase their hiring."
The FSJC team provides privately negotiated senior secured loans that would not typically attract the attention of conventional banks, commercial finance companies, collateralised loan obligation managers, hedge funds and mezzanine investors. Czech and his team average 23 years of leveraged lending, corporate finance and restructuring experience across numerous industries and companies. FSJC’s investment team, based in Greenwich, CT, has loan sourcing offices in Los Angeles and Chicago.
"We believe the FSJC direct lending fund provides our clients with the opportunity to benefit from the structural change in the way companies access credit," says Dan Waters, Co-CEO of FrontPoint. "We are particularly pleased with the success of this fund given the current market and fundraising environment. This is FrontPoint’s largest fund launch ever and it has attracted a diverse set of institutional investors including domestic and international pension funds, endowments, foundations, family offices and high net worth individuals."
