Illinois-based Z Capital has closed its second special situations fund on $750 million, beating its $500 million target.
The firm started investing out of the fund last year, according to sources familiar with the matter. Z Capital declined to comment on fundraising.
The fund will focus on long term control investments in middle-market companies that may require growth capital, turnaround or restructuring.
Most of the investors in Fund II are new and include institutional investors, including sovereign wealth funds, pension funds, wealth management firms, family offices and insurance companies.
Z invests in a variety of distressed companies, one of them Casino operator Affinity Gambling was recently in the news for its announcement that it is likely to default on $382.7 million in long term debt. Z Capital is the largest investor with a 30 percent stake in the company. Affinity is the owner of Silver Sevens an Off-strip Las Vegas casino and other properties in Las Vegas.