Tennenbaum closes $2bn fourth fund

The Santa Monica, California firm’s newest fund will focus on long-term, special situations, including turnarounds, restructurings and bankruptcies.

Santa Monica, California-based private equity firm Tennenbaum Capital Partners has announced the close of its fourth fund on $2 billion (€1.64 billion).

The Special Value Opportunities Fund was raised exclusively to invest in long-term, special situations, which may include legal, operational or financial challenges; turnarounds, restructurings and bankruptcies; corporate divestitures and buyouts; and complex ownership changes.

Tennenbaum tends to focus on “transitional” middle-market companies in a variety of industries including technology, healthcare, energy, aerospace, business services, retail and general manufacturing. According to the press release, the firm will maintain commitments for a 10-year period, and will invest in both public and private companies.

Babson Capital Management, a unit of MassMutual Financial Group, will serve as co-manager of the new fund, which brings Tennenbaum's capital under management to $3.5 billion.

Morgan Stanley served as placement agent for the fund.