Houlihan Lokey Advises Bain Capital Credit

Houlihan Lokey is pleased to announce that Bain Capital Credit (BCC) has completed the recapitalization of two legacy funds and the sale of assets into a new continuation vehicle capitalized by funds managed by Neuberger Berman (NB), existing limited partners (LPs), and BCC. The transaction closed on May 31, 2019.

Formerly known as Sankaty Advisors, BCC is a leading global credit specialist with approximately $40 billion in assets under management and is the credit investment affiliate of Bain Capital, LP.

NB is a private, independent, employee-owned investment manager with $333 billion in client assets. NB is a significant private equity investor with more than $74 billion of committed capital in private equity, including more than $9 billion dedicated to secondary private equity investment opportunities.

The transaction involved Sankaty Credit Opportunities II, LP (COPs II) and Sankaty Credit Opportunities III, LP (COPs III), as well as other legacy BCC investment vehicles. COPs II was a 2005 vintage fund with $1.35 billion of initial commitments, and COPs III was a 2007 vintage fund with $2.2 billion of initial commitments.

Houlihan Lokey served as the exclusive financial advisor to BCC on the transaction. This transaction marks another milestone in the success of Houlihan Lokey's Financial Institutions Group and, in particular, the growing GP and Fund Advisory practice. The transaction highlights the firm's ability to execute complex fund recapitalizations to address end-of-life and liquidity issues for private equity and credit-focused investment managers.