Interested in Private Credit Secondaries?
We are thrilled to announce that Bond Capital is approaching the first close for Fund VIII, and we are reaching out to finalize indications of interest for this closing. We extend our heartfelt appreciation to our existing LPs for their unwavering support and welcome new investors who are evaluating this promising opportunity.
Fund VIII will build upon Bond Capital’s time-tested approach, employing rigorous and disciplined verification to underwrite and adjudicate first and second-lien credit requests for growth capital across the capital structure. We remain committed to supporting qualified later-stage businesses seeking growth across various credit instruments, including senior, junior, mezzanine, unitranche, and structured credit with equity links such as warrants, preferred shares, and common shares.
Private Credit as an asset class is expected to perform twice as strongly as the S&P500 over the next five years. This is as interest rates are anticipated to remain higher for longer, hampering equity growth yet rewarding contracted floating rate obligations. We explain in detail why it’s Private Credit’s time to shine and what the benefits are in making an allocation.
Our investment process revolves around proprietary research and prospecting, which enables us to identify and attract entrepreneurs and companies experiencing positive transitions and growth. The Fund’s primary focus will be on private companies in Canada and the US, generating EBITDA in the range of USD 2-40 million. The Fund is industry agnostic, with the exception of real estate development and natural resource extraction.
Amidst the current market scenario, characterized by ongoing credit contraction, we have recognized compelling opportunities to acquire performing loans. As a result, we have proactively expanded Fund VIII’s mandate to capitalize on these promising prospects.
Presently, the market to service Private Credit Secondaries, which are purchases of existing loans for sale from GPs and LPs, is only about half of the annual deal volume available. This under-capitalized market presents Bond with the opportunity to be highly selective when choosing investments. More information on this underserved market can be read here.
One such attractive prospect is a tranche of an existing syndicated loan that Bond had underwritten. This opportunity arose as the current holder of this note is exiting the alternatives space entirely, allowing us to enhance our participation in this well-performing position. Leveraging our proprietary knowledge of the business, Bond Capital is well-positioned to act swiftly and secure this opportunity for our investors.
Furthermore, as the credit markets experience dislocation, we anticipate similar opportunities, and we remain nimble and opportunistic in pursuing them. Fund VIII’s expanded mandate enables us to participate in these outsized returns, further solidifying our commitment to generating the best risk-adjusted returns for our investors.If you would like to learn more about Fund VIII to explore this attractive Secondary Opportunity with us, please do not hesitate to contact [email protected]. We would be delighted to share further details with you.