Audax, Pantheon Close $1B Direct Lending Continuation Vehicle

Audax Private Debt and Pantheon have closed Audax Direct Lending Solutions Fund I CV, a $1 billion private credit continuation vehicle designed to extend ownership of a seasoned portfolio of sponsor-backed loans. The vehicle will acquire a pool of first-lien senior secured loans and related equity co-investments from Audax Private Debt’s Direct Lending Solutions Fund I, which raised $1.65 billion in capital commitments in January 2019.

Pantheon led and structured the continuation fund transaction, providing existing and new investors with a way to maintain or initiate exposure to the DLS I assets while giving liquidity options to legacy limited partners. Through the CV structure, Audax will continue to manage and monitor the assets, maintaining continuity with its established underwriting and portfolio management process. The DLS strategy, focused on directly originated senior loans, was launched by Audax Private Debt in 2018.

“We believe this transaction underscores the strength and stability of the DLS I portfolio, our commitment to underwriting discipline, and our longstanding credit-first approach, which have contributed to our performance across market and economic cycles,” said Kevin Magid, Chief Executive Officer of Audax Private Debt.

PJT Partners served as financial advisor on the transaction, while Kirkland & Ellis acted as legal counsel to Audax Private Debt. Hogan Lovells served as legal counsel to Pantheon.