Overview
Structure; History and Ownership
SPP Credit Advisors II LLC (the “Advisor”), a Delaware limited liability company, commenced operations
on August 31, 2022. Its principal place of business is New York, NY. The Advisor is wholly owned by its
member, SPP JV Holdco II, LLC (“JV Holdco”), a Delaware limited liability company. The principal
owners of JV Holdco are SPP Principal Investors III, LLC (“SPP Principal”), PACA-SPP LLC (“PACA”)
and Confluence LLC (“Confluence”). The principal owners of SPP Principal are Robin Busch, Todd
Kumble and Stefan Shaffer. PACA is owned by Advantage Capital Holdings LLC. Kenneth King is the
controlling member of Advantage Capital Holdings, LLC.
This Form ADV Part 2A also relates to SPP Credit Fund II GP LLC (the “Fund General Partner”), which
is a special purpose entity that serves as the general partner of the Funds (as defined below) and is under
common control with the Advisor. The principal owners of the Fund General Partner are SPP Principal
and PACA. The principal owners of SPP Principal and PACA are described above
The Advisor has entered into a Management Services Agreement with SPP Capital Partners, LLC (“SPP
Capital”), an affiliate of the Advisor, pursuant to which SPP Capital will provide consulting, management
and advisory services for the Advisor as the Advisor requires to perform its services to its clients.
The Advisor has an investment committee made up of up to four individuals appointed by PACA,
Confluence and SPP Principal.
Types of Advisory Services
The Advisor has been engaged
as advisor to provide non-discretionary investment advisory services intended
for institutional and other sophisticated investors. Currently, the Advisor has two clients, SPP Credit Fund
II LP and SPP Credit Fund II QP LP (collectively, the “Funds ”). Advisor may in the future manage
investments for other institutional investors (the “Other Clients”).
The Advisor provides continuous advisory services to the Fund, as described in more detail below, with
respect to privately negotiated debt investments in lower middle market companies. The investment
objective of the Advisor is to seek attractive risk-adjusted returns for its clients by generating interest
income from debt investments exceeding the cost of capital. The Advisor’s focus is to invest in companies
with enterprise values between $50 million and $300 million, and with EBITDA between $5 million and
$20 million. The size of each investment will range from $10 million to $30 million, but, on an
opportunistic basis, the Advisor may exceed this range.
The Advisor’s services include:
1. Identification, evaluation and assessment of potential investments;
2. Performance of due diligence of any potential investment;
3. Negotiation of the terms and execution of the purchase of any investment; and
4. Monitor and administer performance of investments owned by the Funds or Other Clients.
Assets Under Management
As of December 31, 2023, the Advisor managed a total of $76,153,047 of investments in negotiated private
debt and cash. All are managed on a discretionary basis.