Crestline Investors Forms PE Restructuring Team, Names Mahajan Co-Head

Oct 12 2016 | 6:59pm ET

Alternative credit manager Crestline Investors has created a private equity credit and fund restructuring team that will pursue niche financing opportunities in private equity markets.

The new team will focus on providing custom capital solutions to mature private equity funds approaching the end of their structural lives, Crestline said in a statement. 

As part of the team’s formation, the company also announced the hiring of former Macquarie managing director Amit Mahajan, who will co-lead the team alongside David Philipp.

Both Mahajan and Philipp will report to Douglas Bratton, managing partner & CIO of Crestline.

The PE Credit and Fund Restructuring team is an expansion of the firm’s Crestline-Kirchner initiative, which was formed in 2013 to acquire, manage and invest in underperforming private equity assets, portfolios and funds. It also includes three specialist portfolio managers and a senior associate, with a combined 58 years of experience across principal investing, private equity fund management, workouts and restructurings.

“We see an unmet need in the market for a team that can work with GPs to help them maximize the value of their assets,” said Bratton in the statement. “From 2008-2012, Crestline launched dedicated funds seeking to capitalize on the secondary hedge fund market created by the 2008 financial crisis. After successfully deploying more than $1 billion across three funds, we are refocusing our efforts on what we feel is the next cyclical opportunity set.”

“We estimate there are $300-400 billion in private equity assets currently tied up in funds that have reached or are near their maturity dates,” added Mahajan. “GPs and LPs are looking for alternative financing and liquidity solutions not met by traditional secondary markets. We want to help fill the current gap in the market by working directly with GPs and LPs to identify an exit strategy that fulfills the needs of all parties.” 

Mahajan brings more than 16 years of experience in private equity portfolio financings, direct secondaries and general partner restructurings to Crestline. While at Macquarie, he was responsible for sourcing and executing private debt transactions ranging in size from $15-$250 million, with a focus on secondary private equity deals and portfolio financing for private equity funds. Beforehand, he was a director in the global private funds group at PineBridge Investments, where he was instrumental in building PineBridge’s $1.7 billion global secondary private equity platform.

Founded in 1997, Fort Worth, Texas-based 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 $9.5 billion of assets.

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