Crestline Announces Additional Close of $720M Third Opportunity Fund

Jun 10 2016 | 10:14pm ET

Credit-focused alternative asset manager Crestline Investors has announced an additional close of its third opportunity fund with $720 million in client commitments to date. 

Named the Crestline Opportunity Fund III, the new vehicle will invest primarily in small to mid-size corporate and asset-based credit-oriented opportunities, according to the company, with a focus in North America. Concurrent with the closing, Keith Williams, senior portfolio manager of the fund, was named a partner at Crestline.

The new fund is the ninth in Crestline’s series of opportunistic funds, which started in 2005 and have attracted nearly $4 billion in client commitments to date. Marketing began in October 2015, 18 months following the close of Crestline’s second fund which raised $980 million in March 2014. 

The investment strategy aims to take advantage of dislocations and inefficiencies in the primary and secondary credit markets in North America and Europe, concentrating on under-served or capital-constrained asset classes such as SMEs, out-of-favor sectors, companies in transition and stressed or special situations. The fund provides capital solutions in the form of direct lending, distressed credit, and structured finance, among others. 

“We seek attractive investment opportunities across credit and opportunistic strategies, and this latest close is a testament to our team’s continued success in identifying quality transactions,” said Douglas Bratton, Managing Partner & CIO of Crestline. “The firm is on track to close over $250 million in commitments to investments in these strategies during the first half of 2016.”

“There are large numbers of opportunities in the North American and European markets with capital requirements that are not easily addressed by traditional capital providers. We help fill that gap,” added Williams. 

Founded in 1997, Crestline is an alternative investment manager focusing on a broad array of investment solutions including diversified multi-manager hedge fund portfolios and credit and opportunistic strategies across private credit, specialty lending, CLOs, and opportunistic funds. The company and its affiliated investment team manage around $9.7 billion of assets.

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