PineBridge Raises $1.7B for 3rd Direct Lending Vehicle
PineBridge Investments, a NY-based private asset manager, announced the final close of its third lower middle-market direct lending strategy, PineBridge Private Credit III, at $1.7 billion, equaling the amount raised for its second fund in 2022.
PineBridge Investments’ private credit arm reached its $1 billion target for the fund, bringing the unit’s total assets to $5 billion. Partner commitments and fund-level leverage accounted for around $1.36 billion, according to the firm.
The fund will focus on making directly originated senior secured loans to U.S.-based, sponsor-backed lower-middle-market companies, largely in the business services, consumer, healthcare and manufacturing sectors. Loans are typically provided to companies with EBITDA ranging from $7.5 million to $30 million.
“We’ve had strong support for Fund III right from the very start, a testament to the strength of our business and veteran team. With Fund III in the books, we can push forward with significant capital to build our business and fortify our leadership in the lower middle market,” said Jim Fisher, head of private credit at PineBridge Investments.
According to the firm’s 2024 Private Credit Direct Lending Outlook, the private credit market will diverge as a result of current high interest rates, which have impeded cash flow for over-leveraged portfolio companies as well as those with weak business models or seasonal revenues.
“We believe 2024 will be a year that exposes underperformers, with the impact evidenced by a higher incidence of defaults, losses, and payments in kind. Now more than ever, it’s crucial to maintain investment discipline in this market segment, and for potential investors to assess their partners accordingly.”
As of last year, total assets managed by PineBridge were $157.1 billion.