HIG Bayside Capital, the distressed debt and special situation affiliate of private equity firm HIG Capital (HIG), has closed the HIG Bayside Loan Opportunity Fund IV with aggregate capital commitments of USD1.1 billion, exceeding its USD1.0 billion target.
The fund will continue HIG’s investment strategy of focusing on investments in small-cap special situation credit opportunities in the US.
Sami Mnaymneh (pictured) and Tony Tamer, co-chief executives of HIG, say: “We are grateful for the support from our investors for this offering. The strong response to the fund reflects their confidence in the capability of our team and our differentiated strategy, as we continue to build upon HIG’s long-standing special situation track record.”
John Bolduc, executive managing director and head of HIG Bayside Capital, says: “The next several years will present a compelling opportunity to invest in US special situation credit opportunities, driven by an inefficient secondary market for small-cap stressed/distressed loans and improving conditions for special situation investing. Given HIG’s special situation expertise and deal flow network, the fund is ideally positioned to capitalise on these opportunities.”
The fund will have a broad investment mandate to invest in non-control loan obligations of stressed and distressed companies in the US, including the ability to provide liquidity to troubled companies and to acquire the debt obligations of such companies. The fund will follow the same investment strategy utilised by HIG over the last 12 years in investing in special situation credit opportunities in the US and Europe through four predecessor pools of capital.
