GoldenTree Announces Closing of Oversubscribed Private Credit Fund II

• Private Credit Fund II oversubscribed at hard cap of $2.75 billion, delivering a net IRR of over 20%
• Predecessor vintage delivering 16% net IRR and 1.4x net multiple, representing top-decile returns

NEW YORK--(BUSINESS WIRE)--GoldenTree Asset Management (“GoldenTree”), a global asset management firm with approximately $70 billion in assets under management, today announced the closing of its Private Credit Fund II (the “Fund”). The Fund is oversubscribed at its hard cap of $2.75 billion, reflecting strong demand from a global investor base that includes public and corporate pensions, sovereign funds, foundations, insurance companies, family offices and RIAs across the US, Europe, Asia and the Middle East. Over $800 million of the Fund’s commitments come through a rated feeder structure that provides investors capital-efficient access to the strategy. GoldenTree’s partners and employees committed $50 million to the Fund, demonstrating the firm’s conviction in the strategy and its strong alignment with investors.

The Fund has already deployed close to 40% of commitments across approximately 50 investments in over 10 industries and is delivering a net IRR of over 20%. The Fund follows its predecessor vintage that deployed over 90% of commitments and is delivering a 16% net IRR and a 1.4x net multiple – representing top-decile returns versus peers. Focused on larger companies with average EBITDA exceeding $400mm, of the over 100 investments made in the prior fund, already more than 40 have been fully realized with unlevered gross returns of 14%. These realized investments have an average holding period of less than two years, illustrating the solution-oriented, transitional characteristics, allowing the Fund to recycle capital to compound returns and target higher net multiples than those typically achieved in the industry.

Steve Tananbaum, GoldenTree’s Founder, Managing Partner, and Chief Investment Officer, said, “As an employee-owned firm, we are focused on delivering top quartile returns. Our solutions-oriented approach to private credit allows us to deliver unique value to issuers and sponsors and generate a premium return for our investors. Furthermore, the drawdown fund structure allows us to invest opportunistically.”

Lee Kruter, Partner and Head of Performing Credit, noted, “Our team, resources, and platform allow us to be highly selective, focusing on win-win transactions rather than origination volume. This approach is illustrated through the attractive profile of the Fund’s investments that enjoy on average, double-digit unlevered yields and conservative LTVs below 50%. Furthermore, recent disruptions in private credit, while not systemic, are creating attractive opportunities in the asset class at wider spreads where providing certainly, scale and a range of solutions are valued.”

Kathy Sutherland, Partner and CEO, noted, “The Fund’s oversubscription is particularly relevant in light of recent redemptions from BDCs. It illustrates the appreciation of the asset class by institutional investors, particularly managers able to deliver differentiated returns. Private Credit Fund II’s inception to date IRR of over 20% on close to 40% of drawn capital illustrates the increasing return dispersion in the asset class. We are committed to delivering top quartile, if not top decile returns across our offerings, and are off to a strong start in this fund.”

About GoldenTree

GoldenTree is an employee-owned, global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured credit, emerging markets, real estate, private equity, and credit-themed equities. GoldenTree was founded in 2000 by Steven Tananbaum and is one of the largest independent global credit asset managers. GoldenTree manages approximately $70 billion, with its institutional investors including leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. GoldenTree has over 320 employees, with offices in New York, West Palm Beach, Charlotte, Dallas, Newport Beach, London, Dublin, Munich, Singapore, Sydney, Tokyo and Dubai. For more information, please visit www.goldentree.com.

References to peer group performance and percentile rankings for GoldenTree Private Credit Fund I are based on a peer universe drawn from an external reporting database, refined using internal selection criteria to align with the Fund's strategy. While GoldenTree believes these peer group comparisons are based on reliable information, the peer universe reflects subjective judgments and assumptions, and applying different selection criteria could produce materially different results.