20/10/2010 Author: Elana Margulies

Victory Park Capital launches second offering

Victory Park Capital, an alternative asset manager headquartered in Chicago, has launched its second offering, a private equity version of its maiden hedge fund, HFMWeek has learned.

According to a source familiar with the manager’s plans, VPC Fund II, which has a bias toward longer duration opportunities, implements a distressed private debt and equity strategy that provides financing solutions to underserved small-cap and middle-market companies, primarily in the US.

The offering uses senior secured debt instruments and has the potential for equity participation in the form of control and non-control positions. Targeting $400m, it will have its second close this month on approximately $75m and another one before year-end at $75m-$100m, after having its first close in July with $80m.