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Golding eyes debt secondaries with latest fund of funds

The German manager is aiming to raise up to €600m for the vehicle that can invest in LP secondaries and GP-led processes.

Golding Capital Partners has held a first close of its Golding Private Debt 2020 fund on nearly €200 million.

The vehicle has a final target of between €500 million and €600 million, which the Munich-based fund of funds manager expects it to reach in the first quarter of next year, according to a statement seen by sister publication Private Debt Investor.

The vehicle is expected to make between 15 and 20 commitments to funds on a primary or a secondary basis, with an additional allocation dedicated to co-investments. This would involve opportunistic acquisitions of LP stakes and GP-led secondaries, said Abhik Das, managing director and head of private debt at Golding.

Commitments to the fund have come from institutional investors such as pensions and insurance companies from Germany and other European countries. Golding has not at this stage disclosed the specific identity of any of these investors.

The firm says the fund will build a diversified portfolio with an emphasis on corporate direct lending, in the form of bilateral loans directly negotiated with medium-sized companies in Europe and North America. It will mainly target first lien senior secured loans, but may also selectively invest in subordinated debt strategies. It has a target return of 7 percent net.

Golding added that, depending on the market environment, the vehicle may also invest in special situations funds that aim to acquire loans opportunistically in the secondaries market or that provide capital to companies in complex circumstances.

Golding says it has continued investing since the start of the covid-19 crisis, with several new primary fund commitments and co-investments across its main asset classes of buyouts, infrastructure and private debt.

“We have made six fund investments in Europe and North America to date across a number of strategies, including special situations and distressed funds,” Das said. “In addition, we have been active on the co-investment side, with one deal completed in early April and several other transactions in the pipeline.”

Golding has been involved in private debt since 2003 and manages around €3.5 billion in the asset class on behalf of institutional investors. The capital is held in 17 investment programmes, including funds of funds, co-investment vehicles and managed accounts.