Crescent beats target for second European direct lending fund – exclusive

The Los Angeles-headquartered fund manager has raised €1.6bn, compared with an initial target of €1bn.

US-based fund manager Crescent Capital Group has raised €1.6 billion at the final close of its second European speciality lending fund, Crescent European Specialty Lending Fund II.

The fund, which has levered and unlevered sleeves, was oversubscribed and significantly larger than its target size of €1 billion and its initial hard cap. The predecessor fund, Crescent European Specialty Lending Fund I, closed on €500 million in December 2015.

The latest fund will continue an established strategy of investing in a diversified portfolio of private secured debt securities issued by European companies with a focus on directly originated transactions. Approximately €400 million has already been put to work from the fund in 12 deals.

The firm declined to name specific investors but said it had been backed by leading global pension funds, insurance companies, financial institutions, foundations and endowments.

The European specialty lending strategy is headed by managing director, Christine Vanden Beukel, who joined Crescent in 2011 and was previously a senior managing director at private equity firm Clayton, Dubilier & Rice in London and credit firm GSG Group in London.

Established in 1991, Crescent has been investing in Europe since 1993 and its Crescent European Specialty Lending strategy has committed more than €1 billion in total across more than 30 deals in the region.

Headquartered in Los Angeles, Crescent has around 80 investment professionals and 160 employees, with additional offices in Boston, New York and London. It has a range of private debt strategies including senior bank loans, high-yield debt, mezzanine debt, distressed debt and other private debt securities, and managed around $28 billion in assets at the end of last year.