Audax Private Debt has wrapped up a $1 billion continuation vehicle for private credit, with Pantheon, a global credit secondaries solutions investor serving as the lead investor.

The new fund, Audax Direct Lending Solutions Fund I CV, was formed to purchase a mix of first-lien, senior secured loans and related equity co-investments that previously sat in Audax Private Debt's Direct Lending Solutions Fund I, according to a press release. That earlier fund collected $1.65 billion in commitments and closed in January 2019. Pantheon led and structured the CV transaction.

"We believe this transaction underscores the strength and stability of the DLS I portfolio, our commitment to underwriting discipline, and our longstanding credit-first approach, which have contributed to our performance across market and economic cycles," noted Kevin Magid, CEO of Audax Private Debt.

"It also speaks to our ongoing efforts to deliver flexibility to our investors and optimize outcomes across our many stakeholders, from new and existing limited partners to our private equity sponsor relationships," Magid added.

Through the CV structure, Audax will continue to oversee the fund. The firm also noted its Direct Lending Solutions strategy was launched by Audax Private Debt in 2018, drawing on its underwriting background across senior secured and junior debt products.

 "We believe the CV provides a compelling solution to manage fund-maturity cycles for our investors, while positioning ourselves as a long-term partner to sponsors," noted Steve Ruby and Rahman Vahabzadeh, Audax Private Debt Managing Partners.

"The DLS I CV provides a truly bespoke solution for our investor base, calibrated to meet and deliver outcomes aligned to their longer-term needs. We're excited to partner with Pantheon and believe their structuring expertise and partnership-centric approach helped to make them an ideal partner for this transaction."

PJT Partners advised on the transaction as financial adviser. Kirkland & Ellis provided legal counsel to Audax Private Debt, while Hogan Lovells advised Pantheon.

Audax Private Debt is a debt capital partner for North American middle market companies. The New York-based company has invested $52 billion in support of over 295 private equity sponsors.

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