Junior Capital Program Update



Churchill is pleased to invite you to our Junior Capital Update Call on May 22nd, 2023 at 9:30 AM ET.

Churchill’s scale, flexible investment mandate, and differentiated private equity relationships provide consistent, high quality deal flow across our junior capital platform throughout market cycles. Over the last decade, Churchill has invested $5.9 billion in 200 junior capital platforms, with a 15% gross IRR, 1.3x gross MoC and 9% cash yield (as of 12/31/22). 

• Churchill’s junior capital program continues to perform well and deploy capital. In 1Q23, Churchill closed and invested $292 million in 16 transactions across the platform, representing a 59% increase YoY. 

• Churchill continues to be selective, closing on 8% of opportunities.

• Our all-weather portfolio construction and security profiles remain aligned with the historical strategy, with 1Q23 weighted average leverage of 5.4x, strong equity cushions of 47% and 22% EBITDA margin. 

• Attractive market backdrop and improved terms for junior capital, with the disruption in the public credit markets. Sponsors are becoming more creative and utilizing more junior debt to counter rising rates and ensure optimal capital structures to support value creation initiatives. 

JCOF Fund Status (Q4 2022) 

• JCOF I (2018 vintage): $416 million invested in 58 platforms, generating a gross IRR of 14%.

• JCOF II (2021 vintage): $400 million invested in 63 platforms with total all-in yield of 12% (8% cash). As of 1Q23, JCOF II is 66% invested and committed. 



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Speakers