Silver Point Capital $8.5 Billion Credit Fund

Silver Point Capital, a Connecticut-based credit investing firm, has successfully closed its latest credit fund, Silver Point Specialty Credit Fund III, with over $8.5 billion in commitments. This significant fundraising achievement highlights the firm's strong position in the private credit market.

Key Highlights

• Fund Details: The Specialty Credit Fund III exceeded its initial fundraising target, attracting support from a diverse range of institutional investors.

• Investor Base: The fund drew investments from pensions, sovereign wealth funds, endowments, foundations, insurance companies, and family offices.

• Investment Strategy: The fund will focus on self-originated, senior secured loans to middle-market companies, leveraging Silver Point's expertise in direct lending.

Firm's Financial Overview

• Total Assets: Silver Point now oversees $35 billion across various credit strategies

• Direct Lending Capital: The new fund brings the firm's direct lending strategy to over $15 billion in investable capital

Leadership Perspective

Ed Mulé, CEO and founding partner, expressed gratitude to investors and enthusiasm about continuing to build on the firm's successful direct lending business.This latest fund closing comes just two months after the firm's previous credit fund of $4.6 billion, demonstrating Silver Point Capital's continued growth and strong market position in private credit investments.

Insight into Silver Point Capital

Silver Point Capital is a global credit investing firm with a dedicated team of over 320 employees and over $35 billion in assets under management.

The firm was founded in 2002 by Ed Mulé and Bob O'Shea, former partners at Goldman Sachs.

Silver Point Capital specializes in distressed debt and other special situations.

The firm’s top holdings include EchoStar Corp, Diversified Healthcare Trust, and Studio City International Holdings Ltd.

Silver Point Capital expanded its stake in Studio City International Holdings in September 2024, increasing its ownership to 34.85% of its portfolio. This was done by acquiring an additional 86,115,366 shares at $7.50 per share.

Key Strengths

• 22-year track record of investing across credit cycles

• 112 dedicated investment professionals

• $143 billion total capital deployed

• Global and opportunistic investment mandate

Middle Market Targeting

Silver Point Finance specifically targets middle-market companies with the following parameters:

• Revenue Range: $50 million – $1 billion+

• EBITDA: $15 – $150 million+

• Typical Loan Sizes: $50 – $300 million+

Lending Structures and Rates

Flexible Financing Options
Silver Point offers multiple loan structures:

• Asset Based Loans (ABL)

  • Facility Size: $100mm+

  • Borrowing Base: $50mm+

  • Advance Rates: 70 – 95%

• Cash Flow Loans

  • Target Revenue: $50mm – $1bn+

  • Typical Loan LTV: Up to 70%

  • Leverage: 3x – 7x

Transaction Types

• Acquisition Financing

• Carve Outs

• Growth Capital

• Leveraged Buyouts

• Recapitalizations

• Rescue/DIP Financing

Investment Scale and Performance

Recent Fund Highlights

• Total Investable Assets: $31 billion

• Opportunistic Credit Funds: $6 billion

• Special Situations Funds: $16 billion

• Latest Fund Raise: $4.6 billion (exceeding $4 billion target)

Our Opinion

The alternative lending is getting smarter and more sophisticated. Even with all the talk about rising interest rates and potential recessions, big investors are placing significant bets on private credit. The real sweet spot is in the middle market, targeting businesses with $15-150M in EBITDA. These companies are finding themselves in a tricky spot—too big for fintech solutions but not quite big enough for Wall Street's attention.

As traditional banks pull back, a noticeable funding gap is emerging. To thrive in this space, offering flexible product options is key. It's no longer just about standard term loans; it's about offering a variety of solutions, from asset-based lending to rescue financing. This kind of adaptability is what helps secure deals in today's ever-changing market.

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