Corre Partners held a $220 million first close for its Horizon III Fund, an opportunistic credit vehicle targeting middle-market companies experiencing temporary stress or undergoing turnarounds. The fund has a target size of $500 million and a hard cap of $650 million.
With the first close, Corre Partners now manages more than $1.3 billion of capital.
The firm was established in 2009 and specializes in middle-market credit and turnaround opportunities.
Horizon III is designed to invest where operational, capital structure, or other business challenges create opportunities for credit-oriented investors.
Corre said the strategy seeks to identify value created by complexity and temporary business stress.
The firm’s predecessor vehicle, Horizon II, generated a net internal rate of return of 24.7% and a net multiple on invested capital of 2.4x as of June 30, 2026.
Corre believes the current environment of elevated interest rates and changing middle-market capital structures has expanded the opportunity set for its strategy.
KEY QUOTES:
“I want to first thank our anchor investors for their continued strong partnership that facilitated such a successful first closing.”
“Today’s evolving middle market structure coupled with the current higher-for-longer rate backdrop should enable us to even more effectively deploy Horizon III to generate equity-like returns with less risk.”
John Barrett, Managing Partner and CIO of Corre Partners
