New SKW Funding, Bain Capital Joint Venture Focuses on Troubled Assets

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SKW Funding, a New York City-based private lending and distressed debt platform, and Bain Capital Credit have joined forces on a second joint venture, targeting $1.3 billion of acquisitions and loan originations on troubled assets over the next several years, the companies announced Tuesday.

The new platform was formed on the heels of SKW and Bain Capital’s first joint venture — created in July 2019 — which facilitated the origination of nine deals. The JV will pursue opportunities nationally with a targeted focus on acquisitions throughout the New York City metropolitan region. It will also target special situation loan originations, including mezzanine and preferred equity investments.

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“We are pleased to be expanding upon our relationship and a very successful first joint venture with Bain Capital,” Daniel Wrublin and Ayush Kapahi, principals and co-founders of SKW Funding, said in a joint statement. “Given the current dislocations in the market, we anticipate that we will continue to find very attractive investment opportunities in the debt space.”

The second joint venture is off to an active start, with the companies participating in the $410 debt component as part of the $500 million acquisition and construction financing for Nightingale Properties and Wafra Capital Partners111 Wall Street. The two firms provided the junior mezzanine debt in the deal. 

The venture has also acquired a $42 million note backed by an office building portfolio in Austin, Texas.

“We continue to find excellent relative value in debt opportunities in the New York City market and other core geographies, particularly in COVID-impacted asset classes like office space,” David DesPrez, a director at Bain Capital Credit, said in a statement. “We are excited to expand our relationship with the entire SKW team and look forward to continuing to leverage our unique capabilities to capitalize on attractive opportunities.”