Adams Street Raises $7.5B for Private Credit Fund

The firm's third private credit vehicle reflects investor confidence despite market volatility.

Apr. 13, 2026 at 6:22pm

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A close-up of heavy, industrial banking machinery and equipment, such as vault doors and safety deposit boxes, conveying the physical, tangible nature of financial security and wealth storage.The resilience of private credit fundraising amid broader market turbulence reflects investors' confidence in disciplined managers who can navigate volatile conditions.Chicago Today

Adams Street Partners, a Chicago-based private equity firm, has raised $7.5 billion for its third private credit fund. The fund will focus on providing senior financing to sponsor-backed middle-market companies. The fundraise reflects strong investor demand for private credit assets, even amid broader market turbulence.

Why it matters

The successful fundraise for Adams Street's private credit vehicle underscores the resilience of investor appetite for alternative credit strategies, despite the broader slowdown in private markets. This highlights the ongoing appeal of private credit as an asset class, particularly for institutional investors seeking yield and diversification.

The details

The new $7.5 billion private credit fund, dubbed PC III, will target conservative credit characteristics, including loan-to-value ratios below 40%, an average multiple of about 5x, and strong creditor protections. Adams Street plans to further expand its private credit platform in Europe alongside its North American operations. The firm's total private credit assets have grown to $15 billion, making it the second-largest investment strategy at Adams Street.

  • Adams Street closed its first middle-market collateralized loan obligation (CLO) in January, raising $350 million.
  • In 2022, Adams Street closed its private credit program with more than $3 billion in capital.

The players

Adams Street Partners

A Chicago-based private equity firm that provides private equity and private credit strategies to institutional investors.

Bill Sacher

Partner and Head of Private Credit at Adams Street Partners.

Jeff Diehl

Managing Partner at Adams Street Partners.

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What they’re saying

“We believe managers with true sourcing and underwriting edge will be best positioned to deliver attractive results, and we think we are well positioned to continue scaling our private credit platform with that discipline.”

— Jeff Diehl, Managing Partner, Adams Street Partners

“The fundraise reflects 'investors' confidence.'”

— Bill Sacher, Partner and Head of Private Credit, Adams Street Partners

What’s next

Adams Street plans to further expand its private credit platform in Europe alongside its North American operations.

The takeaway

Despite broader market volatility, Adams Street's successful $7.5 billion fundraise for its third private credit fund demonstrates the continued investor appetite for alternative credit strategies that can deliver attractive risk-adjusted returns.