MidOcean Closes $765M Third Opportunistic Credit Fund

MidOcean Partners, an alternative asset manager specializing in mid-market private equity, structured capital, and alternative credit investments, closed its third opportunistic credit fund at $765 million with commitments from both new and existing institutional investor clients.

MidOcean Tactical Credit Fund III continues the firm’s strategy that invests in off-the-run, mid-sized direct lending, stressed, distressed and dislocated performing investments.

The credit business, which had $7.9 billion in assets at the end of 2023. is led by CIO Dana Carey, who joined MidOcean in 2019 after serving as partner at Apollo Global Management and serving as global co-head of the performing credit business.

“We believe the breadth and depth of the MidOcean platform and network, coupled with the Fund’s flexible mandate, provide us access to proprietary origination and an ability to execute superior opportunities often overlooked by other credit market investors,” said Carey.

To date, the fund has deployed 60% of its capital. Over the last 18 months, the firm has issued four CLOs totaling $1.5 billion and refinanced two existing CLOs, established MPearlRock, a strategic collaboration with Kroger to invest in emerging CPG brands, and last month executed the first investment for its newly launched Structured Capital Solutions strategy.