Churchill Asset Management has closed a $750m (£579.4m) collateralised fund obligation (CFO) that invests in a range of US and European private capital strategies.
The asset manager’s third CFO, NPC SIP 2024-1, is structured as a long duration bond and invests across the flagship strategies of Churchill and Arcmont Asset Management, the operating businesses of Nuveen Private Capital (NPC).
NPC was formed in March 2023 when Nuveen acquired Arcmont, creating a $78bn private capital platform.
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The CFO will invest in US senior lending, junior capital, equity co-investments, secondaries and private equity fund commitments, as well as European direct lending, impact lending, capital solutions and NAV financing.
The firms said that allocations for the vehicle were strategically 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.
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“We are pleased to close our second Nuveen Private Capital offering, which uniquely invests across NPC’s full suite of capabilities,” said Chris Freeze, co-head of the investor solutions group at Churchill and co-head of Nuveen Private Capital Business Development.
“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 served as legal advisor to Churchill.
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