Ivy Asset Group announced the final close of its 2022 Ivy Credit Opportunity Fund ("Fund") with $115 million of capital raised, including targeted fund leverage and separately managed accounts investing alongside the Fund. The Fund primarily targets direct lending to lower middle-market U.S. companies with less than $35 million in EBITDA.
Limited partners include leading RIAs, high net worth individuals, private pension plans, insurance companies, family offices and other institutional investors. In addition to the limited partner commitments, the Fund has secured a term credit facility to complement its available capital.
The Fund will invest in private credit transactions originated and underwritten by Ivy. The investment strategy is focused primarily on senior secured loans and junior secured loans to private equity-sponsored, independent-sponsored, and non-sponsored lower middle-market companies diversified across multiple industries. As of May 1, 2022, the Fund has already invested approximately $90 million in 28 transactions.
Noted by John Hooff, Managing Partner, "The Fund was oversubscribed, which is a direct reflection of strong investor demand for quality credit, trustworthy relationships with long-term partners and our continued successful track record and clean performance. We are pleased that the Fund was actively investing during 2021, a record year for deal volume in which Ivy and its seasoned deal team invested in a variety of transactions. The high volatility and inflationary environment we face has led many investors to seek safe floating rate yield to drive investment returns."
The Fund is expected to generate returns consistent with past investments of the firm. This is Ivy's 17th investment vehicle since its founding in 2009.
Ivy Asset Group, LLC ("Ivy") is an alternative credit manager that seeks to provide financing solutions across the credit spectrum to lower-middle markets businesses. Ivy primarily invests through asset based and cash flow lending transactions in portfolio companies with highly proven track records. Our executive team has extensive management experience in leveraged lending, investment banking, operations, financing, and consulting. Since inception in 2009, the firm has successfully deployed over $1.2 billion of debt capital into transactions up to $75 million. Ivy is headquartered in Charleston, South Carolina.