Grays Peak Capital to Expand Government, Defense Lending With $500M Fund

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Grays Peak Capital has launched a $500 million private credit vehicle designed to provide strategic capital for government and defense contractors in North America.

The New York-based global investment firm said Wednesday its second fund, Grays Peak Private Credit II, has received initial commitments from strategic asset managers groups and Fund I investors.

“Payment dynamics in government contracting can create predictable but uneven cash flows; our platform is built to bridge those timing gaps with secured structured capital,” said Scott Stevens, founder and CEO of Grays Peak Capital.

“Fund II combines government-linked collateral frameworks with rigorous, technology-enabled underwriting to deliver attractive risk-adjusted outcomes for our investors while solving urgent working-capital needs for high-quality counterparties,” he added.

Offering Secured Lending to GovCon Firms Through GPPC Fund II 

GPPC Fund II will provide senior secured lending for government and military middle-market companies, joint ventures, mission-critical counterparties and value-add opportunities. It will offer enhanced liquidity options to investors and target quarterly distributions.

“Grays Peak Private Credit II aims to deliver portfolios that maximize current income and total return through direct-lending exposure to private fixed income investments. Investors remain under-allocated to alternatives, and the strong initial fundraise for GPPC demonstrates the pent-up demand for innovative private credit strategies,” Stevens stated.

“By leveraging our research capabilities, technology-enabled investment platform, and risk management framework, we will offer investors highly differentiated private credit solutions at a time of growing demand,” the chief executive added.

Grays Peak said it has completed approximately 40 credit investments and deployed over $250 million within government programs and contracts. In the past 12 months, the firm has returned over $50 million to investors.