Crescent Capital Group Raises $4.6B For Seventh Mezzanine Fund

Jan 13 2017 | 1:18am ET

Alternative asset manager Crescent Capital Group has raised more than $4.6 billion in capital commitments for its oversubscribed seventh mezzanine fund, significantly surpassing its target of $3 billion.

The new fund, named Crescent Mezzanine Partners VII, was the largest mezzanine offering in the company’s history, Crescent said in a statement. It was supported by a diverse mix of global sovereign wealth funds, pension funds, insurance companies, financial institutions, foundations and endowments. 

Thus far, Fund VII has deployed or committed approximately $900 million across nine transactions, Crescent added. The company’s sixth mezzanine fund raised $3.4 billion in 2013.

As with its predecessor funds, Crescent’s mezzanine activities provide private equity sponsors and management teams with long-term financing to complete leveraged buyouts, acquisitions, recapitalizations and later-stage growth financings. The group targets investments in companies that are typically controlled by private equity sponsors and have enterprise values in excess of $300 million.

Placement agents First Avenue Partners, Baro Investment & Securities Co. and advisor FINAMVEST assisted in international fundraising efforts for Fund VII, the company said, while Debevoise & Plimpton acted as legal counsel.

Based in Los Angeles and founded in 1991, Crescent Capital Group LP invests at all levels of the capital structure, with a significant focus on below investment grade credit through strategies that invest in senior bank loans, high yield debt, mezzanine debt, distressed debt and other private debt securities. As of December 31, 2016, Crescent Capital Group LP managed approximately $25 billion in assets, with a relatively equal split between marketable securities and privately originated debt investments.


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