LCM Partners closed its LCM Partners Credit Opportunities III strategy with more than €2 billion ($2.2 billion) of commitments, said a spokeswoman for the private equity firm.
The strategy comprises managed accounts and a commingled strategy, which the spokeswoman said was the largest of the funds and also closed Monday at €865.5 million in commitments. Four managed accounts will invest in the underlying investments, with commitments ranging from €100 million to €500 million.
Commitments have been made by a number of pension funds and foundations across the U.S., continental Europe and the U.K., including the $45.6 billion Illinois Teachers' Retirement System, Springfield, which committed $100 million.
The strategy uses a single investment platform, allowing all funds within the strategy to invest alongside one another. Since its launch in June 2014, LCM has invested about €1 billion in transactions, and has a pipeline of more than €1.5 billion of performing, rescheduled and non-performing loans from a range of European countries and across consumer and small- and medium-enterprise debt.
“We are ahead of target for pace of deployment and returns achieved for our cornerstone investors since the launch of LCM Partners Credit Opportunities III,” said Adrian Cloake, chief investment officer, in a news release Tuesday. “The final close of the strategy at over €2 billion means LCM Partners continues to hold significant firepower in what is shaping up to be the most active market for loan purchases that we have seen in the past 17 years of business.”
As of Sept. 30, the strategy has delivered an 11.94% internal rate of return since launch.