OSP Closes $600M Value Fund for “Unloved” C&I Loans

O’Brien-Staley Partners announced the final close of OSP Value Fund IV, securing over $600 million for “unloved” business loans, bringing the firm’s total raised to $2.3 billion.

OSP began fundraising in the first quarter. As well as existing LPs, many of whom have steadily increased their commitments since the inception of OSP’s first value fund nearly a decade ago, additional capital was raised from a handful of new institutional investors.

Led by its CEO and CIO, Jerry O’Brien, OSP Value Fund IV builds upon the team’s focus of investing in “unloved” US Commercial & Industrial (C&I) credits, with a concentration on $5 million to $25 million transaction sizes.

OSP focuses on loans that businesses are repaying but have flaws, such as a restructuring under bankruptcy protection.

The Edina, MN-based firm believes there is a persistent opportunity to profit from market dislocations in “out-of-favor, orphaned or criticized” small balance credits as these investments often lack a natural investor base. Since inception in 2010, OSP has invested over $2.2 billion in these investments.

Founded by Jerry O’Brien and former Cargill CEO Warren Staley in 2010, OSP operates across alternative asset management, market-rate impact investing, nationwide loan servicing and deposit management.