Morningside Capital successfully realized its convertible NAV loan investment in Project Turret, achieving strong returns through strategic follow-on investments and a favorable refinancing transaction.

Information on the Target

Morningside Capital has successfully completed the realization of its convertible Net Asset Value (NAV) loan investment in Project Turret, a strategic initiative supporting the expansion of a prominent middle-market private equity sponsor's core portfolio company. Initially, in January 2022, Morningside allocated $20 million aimed at bolstering the geographical reach and operational capabilities of the target company. This investment was uniquely secured by a collection of affiliated private market assets, ensuring robust backing and supporting future growth initiatives.

Throughout the investment period, the portfolio company exhibited strong performance metrics, prompting Morningside to engage in additional follow-on investments. These actions served to further enhance the company's growth trajectory, demonstrating a commitment to maximizing the potential of the investment. The culmination of this investment journey took place in March 2025, when the sponsor successfully facilitated a refinancing transaction that allowed for the complete realization of Morningside's investment.

Industry Overview

The private equity sector in the United States has consistently demonstrated resilience and adaptability in the face of economic fluctuations. The middle-market segment, in particular, has gained considerable traction due to its ability to provide targeted strategic