Churchill Closes $737 Million Junior Capital Opportunities Fund II, Exceeding $500 Million Target

By: Churchill Asset Management LLC via Business Wire

January 05, 2023 at 08:30 AM EST

Churchill Asset Management LLC, an investment-specialist of Nuveen, today announced that it has completed fundraising for Churchill Junior Capital Opportunities Fund II (the “Fund”) with $737 million of limited partner commitments, exceeding its original target of $500 million and well above the size of its $300 million predecessor fund.

The Fund, an unlevered vehicle that invests in junior debt to private equity sponsor-backed U.S. middle market companies, attracted equity commitments from a diverse base of institutional clients globally, including several large pension plans and insurance companies based in Europe and North America. The closing also included a $65 million rated note, which demonstrates the Firm’s continued product development innovation in order to meet the needs of insurance company investors.

“We are very proud to build upon Churchill’s successful middle market junior capital strategy with our latest offering,” said Jason Strife, Senior Managing Director, Head of Junior Capital & Private Equity Solutions at Churchill. “Despite uncertain market conditions, our differentiated deal sourcing approach, flexible junior capital mandate, proven track record and alignment with parent company TIAA continues to resonate with investors and set us apart in the industry. We are incredibly grateful for the strong support received from both new and existing clients across the globe on this capital raise.”

Led by Mr. Strife, Churchill’s Junior Capital & Private Equity Solutions team consists of 20 professionals focused on investing nearly $4 billion annually across junior capital, equity co-investments, secondaries and private equity fund commitments. Utilizing a highly disciplined investment approach centered around downside risk mitigation, the team has funded over $5 billion in nearly 200 junior capital transactions over the last decade, and now deploys more than $1 billion of junior capital per year.

With five offices across the U.S., Churchill has over 140 employees and manages more than $46 billion of committed capital. In recognition of its industry-leading platform, the Firm was recently named “2022 Lender Firm of the Year” by the M&A Advisor¹. Churchill also continues to be ranked as one of the most active private debt investors in the U.S. and was named the #1 “most active U.S. private equity lender” by Pitchbook and the #2 “Americas junior lender of the year” by Private Debt Investor².

1. Selected as one of five finalists for Lender Firm of the Year in September 2022 by an independent panel of judges appointed by the M&A Advisor. A nominal fee was required to submit a nomination. Churchill was announced as the winner in November 2022.

2 Source: Pitchbook Data’s Q3 2022 US PE Lending League Tables; Churchill was selected as a finalist for Americas Junior Lender of the Year in January 2022; after an online industry vote, Churchill was ranked second of all finalists in March 2022.

About Churchill Asset Management LLC

Churchill, an investment-specialist affiliate of Nuveen (the asset manager of TIAA), provides customized financing solutions to middle market private equity firms and their portfolio companies across the capital structure. With over $46 billion of committed capital, Churchill provides first lien, unitranche, second lien and mezzanine debt, in addition to equity co-investments and private equity fund commitments. Churchill has a long history of disciplined investing across multiple economic cycles and our unique origination strategy, best in class execution and investment are driven by more than 140 professionals in New York, Charlotte, Chicago, Dallas and Los Angeles. More information can be found at www.churchillam.com.

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients. Churchill Asset Management is a registered investment advisor and majority-owned, indirect subsidiary of Teachers Insurance and Annuity Association of America.

Certain Nuveen products are advised by Nuveen Alternatives Advisors LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Nuveen Securities, LLC, Member FINRA and SIPC.