New York private equity firm Bregal Sagemount has launched a new credit option, and increased its fund size from $500 million to $650 million.
Clayton Main, formerly of Goldman Sachs & Co. (NYSE: GS), is in charge of the new credit strategy. The firm plans to bring in additional employees.
"Technically it's an upsizing of our fund I, but the incremental $150 million dollars is earmarked for dedicated credit opportunities," says Gene Yoon, Bregal managing partner.
As Bregal went to do deals, the firm's dealmakers found that companies were not always interested in selling equity, but some of them were interested in debt, Yoon says. Offering debt allows the firm to transact with more companies. Instead of investing in a company and also providing it with debt, Bregal will do one or the other, according to Yoon.
Bregal Sagemount, which now has $650 million in committed capital, focuses on investing between $15 million and $75 million in companies, and in partnership with Bregal Investments, can invest up to $150 million. The firm targets investments in business services, software and technology-enabled business, information and media, financial services and health care.