Barclays Structured Principal Investing (BSPI), Barclay Capital’s affiliated principal credit investment unit, has secured its target of $1 billion in capital commitments for its inaugural fund, Barclays Structured Principal Investing Fund, L.P. BSPI may seek additional commitments of up to $500 million for the fund.
Partnering with a number of financial sponsors, the fund will pursue investments between $20 million and $150 million across a broad spectrum of private junior capital instruments, ranging from uni-tranche, second lien and mezzanine debt to holding company notes and structured preferred stock. The fund will also pursue private equity co-investments in partnership with leading financial sponsors. In addition to working with the sponsor community, BSPI will facilitate relationships with institutional investors seeking to co-invest with the fund.
BSPI is part of Barclays Capitals US Leveraged Finance platform, which combines origination, distribution, trading and principal investing capabilities, under the joint leadership of Rick Van Zijl and Joe McGrath, Co-Heads of US Leveraged Finance. BSPI is focused on the primary issue market in North America and will pursue opportunities in conjunction with Barclays Capital US Leveraged Finance, as well as financings led by third-party arrangers.
“The introduction of the fund marks an important milestone in our continuing efforts to build a world-class leveraged finance platform. The financing flexibility that the fund offers is an important value proposition for our clients,” says Van Zijl.
“The record levels of private equity fundraising, coupled with continued volatility in the financing markets, will keep demand for private debt solutions robust. We are well positioned to evaluate opportunities in the middle and upper-middle markets, and look forward to providing creative and certain financing solutions to financial sponsors,” says Brent Humphries, group head, Structured Principal Investing.
Barclays provided an anchor commitment to the fund, which has also secured capital from the institutional investor community.