(Bloomberg) -- Silver Point Capital closed a $4.6 billion opportunistic credit fund, exceeding its target of $4 billion, according to a statement seen by Bloomberg News.
The fund, more than double the size of a predecessor vehicle, is focused on investing in global market dislocations including traded credit and restructuring, the statement said. With the close, Silver Point now manages about $31 billion of assets across strategies including direct lending and structured credit.
The new fund adds to Silver Point’s capacity to invest in complex restructurings and other “unique situations,” Ed Mulé, Silver Point Capital’s founding partner and chief executive officer, said in the statement.
A representative for Silver Point declined to comment for the story.
Higher interest rates have strained corporate balance sheets, especially for highly leveraged borrowers. About $550 billion of bonds and loans globally traded in distressed territory as of the first week of September, according to data tracked by Bloomberg News.
That’s led to increased restructuring activity, including liability management exchanges, where creditors are pitted against each other to raise new financing for borrowers.
Recently, Silver Point emerged as a key player in an out-of-court restructuring for troubled telecommunications firm Lumen Technologies, one of the largest and most contentious transactions in the credit market. That trade turned into a big win for funds, including Silver Point, that helped negotiate the deal.
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