BC Partners to acquire Investcorp BDC at 10% discount to NAV
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, which reportedly values BCP Investment Corporation at 100% of its net asset value, follows a challenging period for Investcorp’s business…
BC Partners has reached an agreement to acquire Investcorp Credit Management BDC for a 10% discount to its net asset value, according to Bloomberg. The transaction, which is valued at 100% of BCP Investment Corporation's net asset value, comes after a difficult period for Investcorp's business development company. In March, the vehicle initiated a strategic review following a rise in troubled investments, a decline in net asset value, and the cancellation of future dividends.
As a result, its shares have plummeted nearly 80% this year. BC Partners, which manages over $40 billion in assets, established its credit platform in 2017 and currently oversees more than $10 billion in the strategy. The company has previously expanded through acquisitions of smaller credit vehicles, such as portfolios from Harvest Capital Credit and OHA Investment Corporation.
The acquisition is taking place amidst growing consolidation in the $1.8 trillion private credit market, as weaker valuations and redemption pressures lead managers to explore strategic alternatives. Other firms, including BlackRock’s TCP Capital and WhiteHorse Finance, are also reviewing their options, while Ares Capital recently finalized a $2.6 billion acquisition of Apollo Global Management’s MidCap Financial Investment Corporation.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
