(Bloomberg) -- Abry Partners, a private equity firm focused on middle-market companies, closed a $1.6 billion continuation fund for one of its private credit vehicles in what it called the biggest such fund to date.
Coller Capital led the funding for the continuation vehicle, according to a statement on Thursday, which did not disclose other partners or details of its participation. The vehicle adds to the funding pool for Abry Advanced Securities Fund III, which opened in 2014 and provides first-lien syndicated loans to US companies.
Continuation vehicles and secondaries transactions have become an ever more popular way for private equity firms to return capital to some investors, and the strategies have started to pop up in the private credit world as more of those funds mature. The vehicles offer the chance for some limited partners to cash out, while new investors aim to pick up stakes at a discount.
The deal was a “full liquidity option to our limited partners in a market environment where liquidity has been scarce,” Abry Chief Executive Officer C.J. Brucato said in a statement. Abry didn’t immediately respond to a request for further details.
Abry currently manages $5 billion in private equity, structured equity and senior debt investments, according to its website. Abry Advanced Securities Fund III opened a decade ago with a $1.5 billion raise goal, according to regulatory filings. As of December, the fund had lent money to more than 200 companies, according to the statement.
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