Beach Point Capital Announces Final Close of BPC Tactical Fund II at $540 Million
Successful Final Close of BPC Tactical Fund II Reflects Increasing Investor Demand for Differentiated Middle Market Hybrid Solutions
SANTA MONICA, Calif., July 7, 2026 — Beach Point Capital Management LP (“Beach Point”), a global alternative investment manager, announced the final close of its BPC Tactical Fund II LP (“Tactical Fund II” or the “Fund”), raising approximately $540 million from existing and new institutional investors. The close brings total capital across the firm’s Hybrid Solutions strategy to approximately $1 billion, reflecting institutional interest in the strategy and the team’s differentiated, credit-oriented approach to hybrid investing.
The Fund seeks to capitalize on a structural financing gap in the middle market. Extended private equity hold periods and limited dry powder relative to unrealized NAV have left mid-sized companies underserved by traditional capital sources and in need of bespoke hybrid solutions that fall outside the mandate of traditional debt or equity providers.
Tactical Fund II provides structured hybrid capital to middle-market companies seeking flexible liquidity solutions that minimize dilution while enabling growth, acquisitions, or sponsor-level recapitalizations. The Fund targets a high conviction portfolio of middle-market companies, structuring investments to include both contracted downside protection and potential equity upside participation. To date, the Fund has deployed over $100 million across three investments, each sourced through proprietary or limited processes leveraging the firm’s deep relationships. Jay Takefman, Co-Head of Hybrid Solutions at Beach Point said:
“We are grateful for the continued confidence of our existing Fund I investors, all of whom recommitted to Tactical Fund II, and we are pleased to welcome our new institutional partners who joined us for this fundraise. The successful close of the Fund reflects the strength of the market opportunity we have identified and the growing recognition among sophisticated institutional investors of the role hybrid capital plays in today's private markets. With a fully capitalized fund and an active pipeline, we believe we are well-positioned to continue delivering the bespoke, credit-oriented solutions that middle-market companies and their sponsors are seeking.”
Robert Bergmann, Co-Head of Hybrid Solutions at Beach Point said:
“Hybrid investing requires a unique combination of credit underwriting, structuring expertise and an ownership mindset. A key differentiator of our strategy is the ability to draw on the resources and experience of a scaled credit platform while delivering highly customized solutions tailored to fit each company’s needs. The structural challenges driving demand for hybrid capital have only deepened, and we believe that our ability to source, structure, and actively support our portfolio companies can provide a meaningful competitive advantage.”
About Beach Point
Beach Point Capital is a global alternative investment manager focused on opportunities across the credit spectrum. The Firm’s integrated platform spans Performing Credit, Opportunistic Credit, Structured Credit & Asset-Based Finance, and Private Credit, investing in high yield bonds, senior loans, CLO origination, securitized credit, direct lending, real estate credit, as well as hybrid and flexible capital solutions. Founded in 2009, Beach Point is employee-owned and manages over $20 billion in assets on behalf of a predominantly institutional client base, with offices in Los Angeles, New York, London, and Dublin. For more information, visit https://beachpoint.capital.