Colbeck Capital has raised $700m (£573.42m) for its third strategic lending fund, surpassing its target by 40 per cent.

Colbeck Strategic Lending III focuses on strategic lending in the middle market. It was funded by a mix of new and existing investors, including public and private pensions, insurance companies, endowments, foundations, consultants, registered investment advisors and family offices.

The fund originates, structures and finances senior secured loans to unsponsored, asset-heavy and cash flow generating middle-market companies undergoing transition.

“We are grateful for the tremendous support we have received for the fund from both new and existing investors,” said Jason Beckman and Jason Colodne, managing partners and co-founders at Colbeck Capital.

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“We believe it reflects investors’ confidence in our differentiated approach and team, as well as underscores growing institutional appetite for time-tested and specialised private credit strategies.

“As we start the new year, we see compelling opportunities to create highly structured capital solutions that can provide unsponsored businesses with the flexible financing they require and our investors with the results to which they are accustomed.

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“We look forward to executing on new investments and further scaling our platform and portfolio.”

The close of the fund brings Colbeck’s current invested and committed capital to $3bn.

Towards the end of last year, Colbeck expanded its team by hiring Gregory Budetti and Henry Chang as head of business development and senior vice president on the investment team, respectively.

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