Key Takeaways
- • BC Partners has agreed to acquire Investcorp Credit Management BDC through its listed vehicle BCP Investment Corporation, valuing the Investcorp fund at a 10% discount to net asset value, according to Bloomberg.
- • The transaction reportedly values BCP Investment Corporation at 100% of its net asset value.
- • The target followed a strategic review launched in March after rising troubled investments, declining NAV and cancelled future dividends; its shares have fallen nearly 80% this year.
- • BC Partners, which manages more than $40bn in assets, oversees more than $10bn in credit strategies through a platform established in 2017.
- • The deal adds to consolidation across the $1.8trn private credit market, alongside Ares Capital's $2.6bn agreement to acquire Apollo's MidCap Financial Investment Corporation.
Summary
BC Partners has agreed to acquire Investcorp Credit Management BDC through its listed investment vehicle, BCP Investment Corporation, in a transaction that values the Investcorp fund at a 10% discount to net asset value, according to Bloomberg. The transaction reportedly values BCP Investment Corporation at 100% of its net asset value.
The deal follows a difficult period for the Investcorp business development company (BDC). The vehicle launched a strategic review in March after reporting an increase in troubled investments, declining net asset value and the cancellation of future dividends. Its shares have fallen nearly 80% this year.
BC Partners, which manages more than $40bn in assets, established its credit platform in 2017 and now oversees more than $10bn in the strategy. The firm has previously expanded through acquisitions of smaller credit vehicles, including portfolios from Harvest Capital Credit and OHA Investment Corporation, and has been seeking approximately $2bn for its largest special opportunities fund.
The acquisition comes amid increasing consolidation across the $1.8trn private credit market, as weaker valuations and redemption pressures prompt managers to consider strategic alternatives. BlackRock's TCP Capital and WhiteHorse Finance are also reviewing options, while Ares Capital recently agreed to acquire Apollo Global Management's MidCap Financial Investment Corporation in a $2.6bn transaction.
The deal follows a difficult period for the Investcorp business development company (BDC). The vehicle launched a strategic review in March after reporting an increase in troubled investments, declining net asset value and the cancellation of future dividends. Its shares have fallen nearly 80% this year.
BC Partners, which manages more than $40bn in assets, established its credit platform in 2017 and now oversees more than $10bn in the strategy. The firm has previously expanded through acquisitions of smaller credit vehicles, including portfolios from Harvest Capital Credit and OHA Investment Corporation, and has been seeking approximately $2bn for its largest special opportunities fund.
The acquisition comes amid increasing consolidation across the $1.8trn private credit market, as weaker valuations and redemption pressures prompt managers to consider strategic alternatives. BlackRock's TCP Capital and WhiteHorse Finance are also reviewing options, while Ares Capital recently agreed to acquire Apollo Global Management's MidCap Financial Investment Corporation in a $2.6bn transaction.
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