BC Partners Credit, the private credit division of BC Partners, is aiming to raise around $1.4 billion for its third Special Opportunities Fund (SOF III). This fund is projected to be the largest of its kind for the firm, according to a Bloomberg report.

Sources familiar with the fundraising efforts indicate that SOF III may surpass its initial target and could be up to 20% larger than its predecessor. However, specific details regarding the final fund size are still being finalized, and BC Partners has chosen not to comment on the matter.

The firm’s special opportunities strategy is designed to offer capital solutions to entrepreneurs and businesses, focusing on asset-backed financing and liquidity solutions primarily in North America. BC Partners has made several notable investments under this strategy, including a $400 million investment in Riddell, a football helmet manufacturer, in 2023. Other investments include GSE Worldwide, a sports talent management firm, and a partnership with Piper Sandler Cos. to provide financing solutions to banks and specialty finance companies.

In addition to SOF III, BC Partners is also in the process of raising between €5 billion ($5.2 billion) and €6 billion ($6.5 billion) for its flagship private equity fund.