(Bloomberg) -- The private credit arm of buyout firm BC Partners is set to raise about $1.4 billion for its third special opportunities fund, according to people familiar with the matter.

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The BC Partners Credit fund, known as SOF III, is likely to exceed its fundraising target and could be about 20% larger than the predecessor vehicle, the people said, asking not to be identified discussing confidential information. It would be BC Partners’ largest special opportunities fund to date.

Details of the fund including its size haven’t been finalized and could still change, the people said. A representative for BC Partners declined to comment.

BC Partners’ special opportunities strategy aims to provide capital solutions to entrepreneurs and firms, while also offering asset-backed financing and other liquidity solutions, primarily across North America. The firm agreed to provide $400 million to football helmet maker Riddell last year and invested in GSE Worldwide, an athlete talent management and sports marketing partnerships company. It also entered into a strategic alliance with investment bank Piper Sandler Cos. to provide financing to banks and specialty finance companies, Bloomberg News has reported.

While fundraising for private credit strategies has been relatively easier than raising money for buyouts, challenges are emerging as contributions from institutional investors are flatlining after years of large commitments. There are also more players in the private credit market, making it harder for firms to stand out and attract capital.

BC Partners is looking to raise €5 billion ($5.2 billion) to €6 billion for its flagship private equity strategy, Bloomberg News reported last month, counting on its recent success in divesting assets to navigate a still-difficult fundraising environment.

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