Audax and Pantheon close $1bn private credit CV

Audax Private Debt has closed a $1bn (£738.7m) private credit continuation vehicle (CV) led and structured by Pantheon.

The Audax Direct Lending Solutions Fund I CV (DLS I CV) was established to acquire a portfolio of first-lien senior secured loans and related equity co-investments from Audax Private Debt’s Direct Lending Solutions Fund I. The fund closed in January 2019 with $1.65bn of capital commitments.

“The DLS I CV provides a bespoke solution for our investor base, calibrated to meet their longer-term needs,” said Steve Ruby and Rahman Vahabzadeh, managing partners at Audax Private Debt. “We’re pleased to partner with Pantheon and believe their structuring expertise and partnership-led approach made them an ideal partner for this transaction.”

The firms said that, under the structure of the CV, Audax will continue to manage and monitor the underlying assets.

Based in New York, Audax is an alternative lender that has invested $52bn since inception across 295 private equity sponsors, while Pantheon, a private markets investor, has approximately $85bn in discretionary assets under management.

“We’ve known the Audax team for decades and are excited to partner with them on this investment,” said Rakesh Jain, global head of private credit at Pantheon. “As lead investor, we applied our credit, scale and general partner solutions expertise to deliver a tailored solution, accessing a high-quality, income-generating portfolio.”

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