A private debt fund managed by Madison Capital Funding, a US middle-market lender, has received a combined $460 million in commitments from seven South Korean institutional investors.
The fund will provide senior credit facilities to middle-market US companies, with $10 million-$50 million in earnings before interest, tax, depreciation and amortization, according to banking sources on June 2.
It targets an internal rate of return of over 7% with an investment period of four years. The unidentified Korean institutions participated in the fund via KB Asset Management Co. in late May.
No further details such as its fundraising target were immediately available.
Chicago-based Madison Capital Funding, founded in 2001, focuses on senior secured loans to US middle-market companies. As a wholly owned unit of New York Life Insurance Co, it manages $12 billion in assets.