The firm cast the demand as a counterpoint to recent redemptions from business development companies.

July 20, 2026

GoldenTree Asset Management has closed its second private credit drawdown fund, Private Credit Fund II, oversubscribed at a $2.75 billion hard cap. The New York firm, which manages roughly $70 billion, drew commitments from a global roster of public and corporate pensions, sovereign funds, foundations, insurers, family offices and RIAs across the United States, Europe, Asia and the Middle East. Its partners and employees added $50 million of their own capital, and more than $800 million of the total arrived through a rated feeder that gives insurers and other ratings-sensitive allocators a more capital-efficient route into the strategy.

Deployment outpacing a fresh close

The fund is already well into the ground. GoldenTree reports close to 40 percent of commitments deployed across roughly 50 investments in more than 10 industries, with an inception-to-date net IRR it places above 20 percent on that partially drawn capital.

The predecessor vintage supplies the fuller record. GoldenTree reports it deployed more than 90 percent of commitments and is delivering a 16 percent net IRR and a 1.4x net multiple, returns the firm characterizes as top-decile against peers. Of more than 100 investments in that fund, over 40 have been fully realized at unlevered gross returns of 14 percent, with an average holding period under two years, a pace the firm ties to a transitional, solutions-oriented posture that lets it recycle capital.

A large-borrower strategy, pitched against BDC outflows

The strategy sits at the larger end of the borrower spectrum, with portfolio companies averaging more than $400 million in EBITDA. GoldenTree points to double-digit unlevered yields and loan-to-value ratios below 50 percent, and to a drawdown structure it says lets it commit opportunistically rather than chase origination volume.

The firm framed the demand as a counterpoint to recent redemptions from business development companies, reading the oversubscription as institutional conviction in managers able to differentiate on returns. It also characterized recent strain in private credit as a source of wider-spread lending opportunities rather than a systemic problem.

GoldenTree, employee-owned and founded in 2000, invests across high-yield bonds, leveraged loans, private credit, distressed and structured credit, and other credit-linked strategies.