Black Diamond collects $700m for Fund III

The fund, which has a $750m target and a $1.1bn hard-cap, could hold a final close in early March.

Black Diamond Capital Management has collected close to $700 million for its third distressed-for-control fund, and could hold a final close by early March.

Fund III has a target of $750 million and a hard-cap of $1.1 billion. Eaton Partners is working as placement agent for the fundraising.

The firm held a first close on Fund III in January 2010 on $206 million. Last year, the Oregon Investment Council committed $100 million and the New Mexico Educational Retirement System committed $80 million to the fund. 

The firm’s second distressed-for-control fund closed on $982 million in 2007, surpassing its original target of $750 million.

Along with the distressed debt funds, BDCM also manages hedge funds and other structured alternatives vehicles.

Last year, BDCM won a bankruptcy auction to buy “substantially all” of the assets of GSC Group, a former powerhouse in the private debt universe. BDCM won the auction with a $235 million bid, though a source told PEO the deal has not yet closed.

The investment in GSC did not come from the third fund, the source said.

The firm was launched in 1995. In 2006, Black Diamond co-founder James Zenni left to start Z Capital Partners.