Adams Street Private Credit Raises $7.5 Billion

Adams Street Partners has successfully concluded its latest private credit fundraising initiative, amassing a substantial $7.5 billion for its third dedicated credit platform. This significant capital injection propels the firm's total assets under management within its private credit strategies to an impressive $15 billion, underscoring its rapid expansion in this asset class since the strategy's 2016 debut. The capital secured includes leverage and drew robust backing from a diverse base of both long-standing and new institutional investors, with a notable 40 percent of commitments originating from international sources.

This latest fundraise solidifies private credit as the second-largest investment strategy at Adams Street, demonstrating a clear market appetite for its approach. The firm's strategy centers on providing senior secured financing solutions to middle-market companies backed by private equity sponsors. A key tenet of their investment philosophy, as highlighted by the firm, is a commitment to conservative credit underwriting. This is evidenced by portfolio metrics such as loan-to-value ratios consistently below 40 percent, average debt multiples around 5x, and the inclusion of strong creditor protections, including maintenance covenants.

The successful deployment of this capital is further supported by Adams Street's strategic global expansion. Alongside its established presence in North America, the firm has been actively building out its direct lending capabilities in Europe. This geographic diversification is crucial for accessing a wider array of opportunities and catering to the global mandates of its institutional investor base, reinforcing its position as a comprehensive private markets solutions provider.

This fundraising achievement follows a period of notable activity for Adams Street's credit division. Earlier this year, the firm launched its inaugural public collateralized loan obligation (CLO) valued at $350 million. Furthermore, the credit team has garnered multiple industry accolades, recognizing its consistent performance and expertise in the private debt arena. These accomplishments collectively highlight the firm's growing influence and capabilities within the competitive credit markets.

Bill Sacher, Partner and Head of Private Credit at Adams Street Partners, expressed satisfaction with the outcome, stating, "We are extremely pleased with the continued support for Adams Street’s Private Credit Program. In our view, this successful fundraise is reflective of the quality of our portfolio and our investors’ confidence in our ability to protect capital as we seek to deliver consistent performance, in part by leveraging the full Adams Street platform which has helped us to access many high-quality opportunities and apply differentiated underwriting insight."

Echoing this sentiment, Jeff Diehl, Managing Partner and Head of Investments, added, "Adams Street’s private credit offering continues to stand out in a competitive market due to our disciplined diligence, rigorous underwriting, and long-standing sponsor relationships. We believe managers with true sourcing and underwriting edge will be best positioned to deliver attractive results, and we think we are well positioned to continue scaling our private credit platform with that discipline."

With over $65 billion in global assets under management, Adams Street Partners offers a broad spectrum of private equity and private credit solutions. Their offerings are designed to enhance institutional investor access to private markets through growth capital and evergreen fund structures, demonstrating a commitment to innovation and accessibility in alternative investments.