Chicago lender NXT Capital LLC has closed an $800 million leveraged loan fund.
The fund, NXT Capital Senior Loan Fund III LP, will invest in first- and second-lien loans that NXT's corporate finance group originates. The loans, sold primarily to private equity-backed middle-market companies, include: term, delayed-draw term, revolving-credit, stretch-senior, unitranche, first-lien-term- behind-revolver, split-lien and last-out.
With the addition of the fund, NXT boasts $4 billion in third-party committed capital. The new fund received $291 million in equity commitments from seven institutional investors, including pension plans, insurance companies and foundation. Wells Fargo Bank NA led a $420 million syndicated credit facility that provides the balance of the fund's investment capacity. That credit facility is expected to increase in the first quarter to bring the fund's investment capacity to $800 million, according to NXT.
For more on the lending climate, see Interest Rates Will Rise, but Alternative Lenders Will Rule.