Churchill Asset Management LLC, an investment-specialist of Nuveen, has closed its third collateralized fund obligation, NPC SIP 2024-1.
The $750 million transaction is said to be structured as a “long-duration bond and invests across the flagship strategies” of Churchill and Arcmont Asset Management Limited, the operating businesses of Nuveen Private Capital (NPC), including:
- U.S.-based: Senior lending, Junior capital, Equity co-investment, Secondaries, and Private equity fund commitments
- European-based: Direct lending, Impact lending, Capital solutions, and NAV financing
Nuveen Private Capital formed in March 2023 when Nuveen acquired London-based Arcmont, which in combination “with Churchill, has created a $78 billion private capital platform and one of the world’s largest private credit managers.”
Allocations for the LDB were reportedly selected to meet key investor objectives including “significant credit exposure, strategy diversification, and duration while also maintaining strong alignment with Nuveen Private Capital’s ultimate parent company, TIAA.”
Chris Freeze, Co-Head of the Investor Solutions Group at Churchill and Co-Head of Nuveen Private Capital Business Development said:
“We are pleased to close our second Nuveen Private Capital offering, which uniquely invests across NPC’s full suite of capabilities. Our goal is to develop structures that help investors solve for today’s market complexities, while gaining exposure to attractive private capital opportunities. We believe the structure’s long duration strongly resonated with insurers and other investors focused on long duration investment grade rated debt, especially as they look to capture attractive yield enhancement.”
Evercore served as the Sole Structuring Advisor of the transaction.
Dechert LLP served as legal advisor to Churchill.
As noted in the update, Churchill, an investment-specialist affiliate of Nuveen (the asset manager of TIAA), provides “customized financing solutions to U.S. middle market private equity firms and their portfolio companies across the capital structure.”
With over $52 billion of committed capital, they provide “first lien, unitranche, second lien and mezzanine debt, in addition to equity co-investments, secondary solutions and private equity fund commitments.”
Churchill reportedly has a history of investing across “multiple economic cycles and their unique origination strategy and investment approach are driven by nearly 200 professionals in New York, Charlotte, Chicago, Dallas and Los Angeles.”
As mentioned in the announcement, Arcmont Asset Management, an investment affiliate of Nuveen, the investment manager of TIAA, is a private debt asset management firm “providing flexible capital solutions to a wide range of businesses in Europe.”
Established in 2011, Arcmont has raised “approximately €33 ($35) billion in capital raised to date from institutional investors globally and has committed over €33 ($35) billion across more than 425 transactions.”
With an experienced investment team, an investment track record and deep technical expertise, Arcmont says that it currently offers “flexible capital solutions to European businesses, with the reliability of a partner that values long-term relationships.”
Headquartered in London, Arcmont’s presence “spans Amsterdam, Frankfurt, Madrid, Milan, Munich, Paris, Stockholm and New York.”
It maintains a local origination network and “builds and preserves close relationships with sponsors, borrowers and local intermediaries.”