MidOcean Partners, a New York-based alternative asset manager specializing in middle-market private equity, structured capital, and alternative credit investments, closed its third opportunistic credit fund, MidOcean Tactical Credit Fund III (the “Fund”) and related separately managed accounts, with commitments totaling $765 million. The Fund received strong support from a diverse base of institutional investors globally, including new and existing MidOcean clients.
MidOcean’s Tactical Credit strategy serves as an all-weather solution to investors, designed to identify and capitalize on what the Firm believes are the most attractive investment opportunities across directly originated and liquid credit as the market environment evolves. The strategy, which targets off-the-run, mid-sized direct lending, stressed, distressed and dislocated performing investments, leverages the intellectual property of MidOcean’s sector-focused credit investment team, private equity platform and Operating Partner resources to source and underwrite investments with speed and certainty. To date, the Fund has deployed 60% of its capital within investment themes that present attractive risk/return opportunities.
Dana Carey, Chief Investment Officer of MidOcean’s credit business, said, “We are pleased with the demand we received for our third opportunistic credit fund and are grateful to our investors for the trust they have placed in our platform and team. We believe the breadth and depth of the MidOcean platform and network, coupled with the Fund’s flexible mandate, provide us access to proprietary origination and an ability to execute superior opportunities often overlooked by other credit market investors.
“Looking ahead, we see many opportunities to deploy capital across mid-sized situations where we have significant expertise and the market is undergoing transition. We are confident in our team’s ability to continue transacting to deliver attractive risk-adjusted returns for our investors.”
The Fund’s successful closing builds upon strong momentum across MidOcean’s platform. Over the last 18 months, the Firm has issued four CLOs totaling $1.5 billion and refinanced two existing CLOs; established MPearlRock, a strategic collaboration with Kroger to invest in emerging CPG brands; and just last month executed its first investment for its newly launched Structured Capital Solutions strategy.