Centerbridge Partners LP mobilized $3 billion of capital it raised in 2016 from investors to benefit from an expected "robust credit cycle," Bloomberg News reported, citing people with knowledge of the matter.
The capital raised for Centerbridge Special Credit Partners III-Flex LP was accrued as part of a stapled offering linked to Centerbridge Special Credit Partners III, one of the people said.
Both vehicles focus on opportunistic investments in senior loans and high-yield bonds issued by middle-market and large stress-stricken companies in North America and Europe, according to a memo by Oregon Investment Council, an investor in both funds.
The reserve fund can be activated at the private equity firm's discretion at any point during the agreed-upon investment period "should a robust credit cycle materialize." The firm would not charge management fees on that pool of capital until it is activated, Bloomberg reported, citing the memo.
A representative of Centerbridge declined Bloomberg's request for comment.