Buyout Firm BC Partners Hauls in Cash for Wagers on Company Debt

  • BC Partners is said to near $700 million for first credit fund
  • Former Apollo executive Goldthorpe joined BC to lead debt team

Private equity firm BC Partners is finding investors willing to back its foray into debt investing as it joins other buyout shops diving into the credit space.

BC Partners plans to finish raising $700 million next month for its new credit offering, people with knowledge of the matter said. About $200 million is from staff, friends and family, or what can be considered in-house money, said the people, who asked not to be identified because the details are private.

The firm hired Ted Goldthorpe, a former senior credit executive at Apollo Global Management LLC, earlier this year to lead the new business.

A representative of London-based BC Partners declined to comment.

BC Partners, which manages 18 billion euros ($21.5 billion), joins several private equity firms expanding beyond buying and selling companies as they find new ways to satiate investors starved for yield elsewhere. The recent push by Advent International, Thoma Bravo, BC Partners and others emulates the model of more established rivals like Blackstone Group LP and Apollo, which successfully branched out from their leveraged-buyout roots.

Tech-focused buyout firm Thoma Bravo is planning to raise as much as $1 billion for its first debt fund, people with knowledge of the plans said in June.

Founded in 1986, BC Partners invests in Europe and the U.S. Goldthorpe last year resigned as president of Apollo Investment Corp., a publicly traded lender managed by Apollo Global, and previously ran the bank loan distressed investing desk at Goldman Sachs Group Inc., where he worked for 13 years.

The new credit team at BC Partners also includes Matthias Ederer and Henry Wang.

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