Key Takeaways
- • Proterra Investment Partners LP closed Proterra Credit Fund 2 LP above its $400 million target and above its initial $500 million hard cap, according to a Business Wire release dated July 25, 2023.
- • Fund 2 is more than double the size of Proterra's predecessor credit fund and expands its food and beverage credit platform launched in 2019.
- • Investors include state, local and corporate pension funds, insurers, family offices, RIA clients and Proterra professionals.
- • The fund targets North American middle-market food and beverage companies through unitranche loans supporting sponsor-backed acquisitions; Proterra has made more than 20 investments since launching the strategy.
- • Briarcliffe Credit Partners served as sole placement agent; Proterra manages $3.7 billion in AUM.
Summary
Proterra Investment Partners LP, a Minneapolis-based alternative asset manager focused on natural resources investing, announced the final close of its second private credit fund, Proterra Credit Fund 2 LP ("Fund 2"). According to the firm's Business Wire announcement, Fund 2 exceeded its $400 million target and closed above its initial $500 million hard cap. The fund drew commitments from a diverse investor base including state, local and corporate pension funds, insurers, family offices, RIA clients and Proterra professionals.
The fund builds on Proterra's food and beverage credit platform, established in 2019. Its credit strategy provides financing to North American middle-market food and beverage companies, with a focus on leading and arranging unitranche loans supporting sponsor-backed acquisitions. Since launching the strategy, Proterra has made more than 20 investments, which the firm attributes to trends such as rising consumer demand for sustainably grown, clean-label and "better for you" products. Proterra describes the platform as offering attractive, risk-adjusted returns in a growing sector.
Rich Gammill, Managing Partner at Proterra, said the firm was grateful for support from existing and new limited partners and argued that larger generalist lenders often overlook innovative, sustainably grown and clean-label food producers, a gap Proterra aims to fill. Briarcliffe Credit Partners, a New York-headquartered placement agency focused exclusively on private credit, acted as sole placement agent. Founder and CEO Jess Larsen said investors are increasingly selective and seek differentiated private credit strategies.
Proterra is a global alternative asset manager with $3.7 billion in AUM and a 61-person team. The firm was spun out of Black River Asset Management, a wholly owned, independently managed subsidiary of Cargill. According to the release, Preqin ranks Proterra's ESG transparency among the top quartile of credit fund managers.
The fund builds on Proterra's food and beverage credit platform, established in 2019. Its credit strategy provides financing to North American middle-market food and beverage companies, with a focus on leading and arranging unitranche loans supporting sponsor-backed acquisitions. Since launching the strategy, Proterra has made more than 20 investments, which the firm attributes to trends such as rising consumer demand for sustainably grown, clean-label and "better for you" products. Proterra describes the platform as offering attractive, risk-adjusted returns in a growing sector.
Rich Gammill, Managing Partner at Proterra, said the firm was grateful for support from existing and new limited partners and argued that larger generalist lenders often overlook innovative, sustainably grown and clean-label food producers, a gap Proterra aims to fill. Briarcliffe Credit Partners, a New York-headquartered placement agency focused exclusively on private credit, acted as sole placement agent. Founder and CEO Jess Larsen said investors are increasingly selective and seek differentiated private credit strategies.
Proterra is a global alternative asset manager with $3.7 billion in AUM and a 61-person team. The firm was spun out of Black River Asset Management, a wholly owned, independently managed subsidiary of Cargill. According to the release, Preqin ranks Proterra's ESG transparency among the top quartile of credit fund managers.
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