Crayhill Capital holds final close on $820m principal strategies fund

The second asset-based fund hit its hard cap, and surpassed its $500m target.

Crayhill Capital Management has closed its second principal strategies fund, hitting its hard cap at $820 million, according to a news release. The Crayhill Principal Strategies Fund II will build upon the first principal strategies fund while capitalizing on deep market opportunities from supply and demand imbalances of capital.

“We raised the second fund as a successor to the first and a continued strategy in asset-based private credit with an established track record,” Josh Eaton, co-founder and managing partner of the New York-based and minority-owned manager, told Private Debt Investor in an interview.

The latest fund, which was launched in March 2020, surpassed its $500 million target. It will focus on deploying flexible and scalable capital solutions to specialty finance platforms in renewable energy, trade receivables, specialty real estate, equipment finance and media, according to the firm.

The second principal strategies fund had support from both new and existing institutional investors, including public and corporate pension plans, insurance companies, foundations and endowments. It was previously on its fourth close at $716.12 million, according to PDI research.

The latest fund closing brings Crayhill’s assets under management to more than $1.6 billion, the firm said. Crayhill focuses on asset-based investments and on providing debt services to renewable energy, industrial and technology companies.

“We see ourselves as an asset-based private credit investor, so our lending is done on a senior-secured basis to specialty finance companies or [to those] who need to grow their balance sheet,” Eaton added.

Crayhill previously raised $200 million for its structured income fund, which launched in December of 2019; in 2018 raised a pair of co-invest funds, according to PDI research.