Crescent Capital Group raises $4.6bn for mezz fund

The global alternative investment firm closed its mezzanine debt fund well above $3bn target.

Crescent Capital Group has held a final close of its Crescent Mezzanine Partners VII with $4.6 billion of capital to put to work, the company said on 12 January.

The fundraising exceeded the fund’s original target of $3 billion. The vehicle had secured $3.54 billion in commitments by 16 December from limited partners, including some who re-applied their commitments from Mezzanine Partners VI, as Private Debt Investor previously reported. The mezzanine fund culled capital commitments from limited partners from more than 20 countries, including sovereign wealth funds, pension funds, insurance companies, financial institutions, foundations and endowments, the company said.

Commitments to the fund include $150 million commitments from both the Michigan Department of Treasury and the Florida State Board of Administration, according to PDI data.

PDI data also shows that LP investors for the seventh mezzanine fund include the Government Employees Pension System and the Korea Teachers Pension Fund, both based in Seoul, South Korea. The former committed $50 million, while the latter pledged $100 million.

So far, the fund has deployed or committed approximately $900 million across nine transactions, the company also said.

The firm was not immediately available to comment further.

The Los Angeles-headquartered firm began fundraising for its latest mezzanine fund in 2015, according to US Securities and Exchange Commission filings last December

This closing represents the largest mezzanine offering that the platform has facilitated so far. Crescent’s previous mezzanine debt vehicle closed at $3.44 billion after setting a $2.5 billion target, PDI data shows.

Crescent’s mezzanine debt platform provides private equity sponsors and management teams with financings for leveraged buyouts, acquisitions, recapitalisations and later-stage growth. The group targets investments in companies that have private equity sponsors and have enterprise values in excess of $300 million.

Crescent Capital Group manages approximately $25 billion in assets, with a relatively equal split between marketable securities and privately originated debt investments, as of 31 December 2016, according to a statement.

First Avenue Partners served as placement agent for the fund.