Crescent Capital Group is set to hold a final close on its first European debt fund by June, around its target of €500 million, PDI understands.
Crescent Credit Europe, the London-based arm of the LA-headquartered firm, has raised north of €375 million for Crescent Europe Speciality Lending Fund. Placement agent Asante Capital Group is understood to be helping with fundraising.
Crescent Capital and Asante declined to comment.
Crescent’s European specialty lending strategy, led by managing director Christine Vanden Beukel, has made a series of unitranche investments over the last few months.
In February, it provided a £32.5 million unitranche loan to support the refinancing and recapitalisation of the Interfloor Group, Europe’s largest manufacturer of carpet underlay and flooring accessories. Interfloor, majority-owned by Milestone Capital Partners, refinanced a mezzanine facility provided by Hutton Collins Partners, which remains a minority shareholder.
In January the firm made another unitranche investment to support the acquisition of Nurse Plus, by Sovereign Capital, a UK-based private equity firm. Proceeds from the investment were to be used to help the business expand its ability to provide nurses and healthcare assistants to private homes, nursing homes, residential care homes and private hospitals.
Crescent’s European Speciality Lending Fund held a first close of around €250 million in the second quarter of 2014. The fund has the flexibility to invest across the entire debt capital structure, according to Crescent Capital’s website. Its strategy is also to invest in the primary leveraged finance markets, particularly the senior secured debt obligations of sub-investment grade companies as well as European high yield bonds, the firm states.
Crescent closed on its US fund Crescent Mezzanine Partners VI on $3.4 billion in August 2013, having launched with a $2.5 billion target in 2012.
Investors in that fund included: The City of San Jose Police & Fire Department Pension Plan, CWA / ITU Negotiated Pension Plan, the Finnish Local Government Pensions Institution (KEVA), Florida State Board of Administration, MassPRIM, Michigan Department of Treasury, Oregon Investment Council, and the Oregon Public Employees' Retirement System.