FrontPoint Partners closed the FrontPoint-SJC Direct Lending Fund to new investors on Dec. 31 after amassing commitments totaling $1 billion, confirmed Steven G. Bruce, a spokesman.
About 53% of the commitments are from institutional investors, with the remainder from high-net-worth individuals, Mr. Bruce said.
The fund’s strategy focuses on making privately negotiated senior secured loans to U.S. middle-market companies. Fundraising began in February after Stephen Czech and his investment team joined FrontPoint from Gottex Fund Management Holdings, Mr. Bruce said. Mr. Czech is the portfolio manager of the fund.
“U.S. 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. FSJC plans to fill that void for credit-worthy businesses in need of secured debt that is required to expand their businesses and increase their hiring,” Mr. Czech said in a news release.
The FSJC fund has made loans totaling about $165 million to date.
“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,” Dan Waters, co-CEO of FrontPoint, said in the release.
FrontPoint Partners managed $4.5 billion in single and multistrategy hedge funds as of Jan. 1.
