Grays Peak Capital, a global investment firm based in New York, has officially launched its second private credit fund, named Grays Peak Private Credit II (GPPC GovCon).
This new fund is specifically designed to support companies operating within the government and defense sectors across North America. The goal is to provide strategic capital to middle-market businesses, joint ventures, and other opportunities that add value to the broader ecosystem of government contractors and military-related enterprises.
GPPC GovCon has already secured early commitments from investors who participated in the first fund, as well as several strategic asset management groups.
With these initial backers in place, the fund plans to deploy up to $500 million each year. The investment strategy is centered on generating consistent income for its investors, with quarterly distributions and flexible liquidity options built into the fund’s structure.
The fund will focus on short-term, senior-secured loans to companies that play mission-critical roles in government operations.
These loans will be backed by substantial collateral and managed using Grays Peak’s proprietary analytics platform, which combines data science and artificial intelligence. This technology enables the firm to monitor investments in real time and make informed decisions about underwriting, pricing, and risk management.
Grays Peak Capital has already demonstrated success in this space. Through its private credit strategy, the firm has completed around 40 credit investments and deployed over $250 million into government programs and contracts.
In the past year, it returned over $50 million to its investors, underscoring its ability to generate meaningful returns while supporting essential industries.
This second fund marks a significant expansion of Grays Peak’s commitment to financing the backbone of government operations, using advanced analytics and a disciplined lending approach to deliver both impact and income.
KEY QUOTES:
“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. 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.”
Scott Stevens, Founder & Chief Executive Officer of Grays Peak Capital
“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. 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.”
Grays Peak Founder & CEO Scott Stevens
