UBS O’Connor Raises USD 1.7 billion in Private Credit Opportunities Strategy

New York, January 20, 2022 – UBS O’Connor, the multi-strategy hedge fund manager within UBS Asset Management, closed fund raising for the Clover Private Credit Opportunities II Strategy (“PCO II”). With total equity commitments of approximately USD 1.7 billion, PCO II was oversubscribed relative to its initial target. The total capital base for PCO II is expected to be approximately USD 2.5 billion, including anticipated leverage.

PCO II was backed by both existing and new investors with commitments from LPs across various geographies including North America, Europe and Asia. The investor mix included pension funds, insurance companies, high net worth individuals, family offices, fund-of-funds and foundations.

The strategy is managed by the O’Connor Capital Solutions team, founded in 2015, and has raised more than USD 3bn in commitments across multiple vehicles. It has long-term sourcing relationships with borrowers, private banks, investment banks, equity sponsors, family offices and other private credit funds.

Rodrigo Trelles, Co-head of O’Connor Capital Solutions, said: “This strategy allows us to continue our disciplined lending approach while adding even more focus on diversification. The events triggered by dislocation in the markets in 2020 remain a catalyst for generating attractive investing opportunities across a wide range of sectors and situations. Our global and flexible mandate allows us to capture those opportunities, to move fast and to execute with conviction.”

Baxter Wasson, Co-head of O’Connor Capital Solutions, said: “We are pleased with the growth not only in capital raising, but also in team expansion and investments. With this foundation and momentum, we look forward to continue providing value-add financing solutions to borrowers and seek to deliver compelling, risk adjusted returns to investors.”

Through PCO II, O’Connor will primarily target corporate direct lending and asset finance investments across various sectors with a focus on investment sizes between USD 20 million and USD 200 million. Co-managed by Baxter Wasson and Rodrigo Trelles, O’Connor Capital Solutions invests across corporate credit, asset finance, real estate and other illiquid collateral in multiple jurisdictions, industry sectors, and different parts of the capital structure.

Asset Management is a large-scale asset manager with a presence in 23 markets. It offers investment capabilities and investment styles across all major traditional and alternative asset classes to institutions, wholesale intermediaries and wealth management clients around the world. It is a leading fund house in Europe, the largest mutual fund manager in Switzerland, the second largest fund of hedge funds manager and one of the largest real estate investment managers in the world.

O'Connor is a multi-strategy hedge fund manager within UBS Asset Management, with complete independence in regard to investment decision-making. O’Connor has over 40 years of institutional experience in trading and market making and 20 years’ experience as a hedge fund manager with a strong focus on relative value investing and risk management. O'Connor's capabilities cover a wide range of investment programs and manage over USD 10.8 billion in assets (as of December 1, 2021) on behalf of institutional and high net worth clients. The firm has a global operating platform with offices located in New York, Chicago, Stamford, London, Hong Kong, Shanghai and Singapore.

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