Final close of CVC Credit's Global Special Situations Fund II surpasses $1 billion target

CVC Credit Partners is pleased to announce the final close of Global Special Situations Fund II with total capital commitments of $1.42 billion¹ raised within eight months, surpassing its original target of $1.0 billion. The fund represents the continuation of the successful track record of its predecessor fund, GSS I. In aggregate with other investment vehicles across the platform, CVC Credit Partners now manages over $4.6 billion dedicated to stressed and distressed credit investments.

GSS II follows on from the success of the first fund, which raised $726 million in June 2016. Investors in GSS II comprise of a mix of returning and new investors representing a broad global base of private capital sources including pension funds, insurance companies, fund of funds, foundations, endowments and family offices across the Americas, Europe, Middle East and Asia.

The fund will invest in stressed and distressed debt situations across Europe and North America, primarily through the purchase of senior secured debt in issuers that will typically be undervalued with respect to enterprise value or cash flow valuation. Since 2014, the investment team has invested in over 110 distressed issuers, and since January, GSS II has already made nine investments and is over 10% invested.

Mark DeNatale, global head of Special Situations at CVC Credit Partners commented on the outlook for the market: "Given recent volatility in credit markets, and with banks continuing to reduce risk exposures, we see significant value in stressed and distressed credit opportunities in both the U.S. and Europe. With Global Special Situations Fund II, the team can continue their proven investment strategy that aims to deliver attractive returns for our investors both in the current market environment, as well as in a potential downturn."

Hamish Buckland, chairman of CVC Credit Partners said, "CVC Credit Partners is well positioned to find the best investment opportunities using the CVC network to gain insight into businesses and truly understand sector and macro dynamics. Investors understand the importance of local knowledge and insight, and the successful fundraising demonstrates a high degree of confidence in our investment capabilities."

¹ Total capital commitments of $1.42 billion includes estimated commitments from persons related to CVC Credit Partners of $100m, which are expected to be accepted by the fund's general partner on or around 31^st October 2019, which will be the final closing date of the fund.