Castlelake eyes $1bn for new fund

The Rory O'Neill-led firm is returning to market just 14 months after closing its $1bn-sized second fund.

Castlelake, formerly known as TPG Credit Management, is seeking to raised $1 billion for its latest distressed debt fund, according to reports.

The firm, which is led by Rory O'Neill, has set a hard cap of $1.25 billion for Castlelake III. Its previous vehicle raised $1 billion when it closed just over a year ago.

A spokesman for the firm could not be reached for comment.

The fund's focus will be on distressed assets in the US and Europe, in line with its existing strategy.

It will have a three year investment period following a final close, with all distributions during that period available for reinvestment. The fund will have a six year life span post-final close, the reports said.

Castlelake will charge a 1.75 percent management fee during the investment period, falling to 1.5 percent after than. Carry will be 20 percent of profits with an 8 percent hurdle.

Castlelake II is reportedly generating a 23 percent IRR as of 31 March, according to CalSTRS. Castlelake I, a 2007 vehicle, was yielding a 5.8 percent IRR at the same date, according to CalPERS data.