Crescent nears second close on around $2.5bn – exclusive

The Los Angeles-based firm is approaching the $3bn final target for its seventh mezzanine fund according to sources.

Crescent Capital Group, a private credit fund manager, will reach the second close of its Crescent Mezzanine Partners Fund VII within the next few days on about $2.5 billion, according to market sources.

The fund, which PDI revealed was close to a first close on approximately $1.5 billion in December last year, has a final target size of $3 billion.

The firm itself is unable to comment on fundraising.

Crescent’s previous fund, Crescent Mezzanine Partners VI, closed on $3.4 billion in August 2013, beating a $2.5 billion target.

For the last 20 years, Crescent has been investing in senior bank loans, high yield bonds, mezzanine debt and distressed debt securities.

The firm is headed by managing partners Mark Attanasio and Jean-Marc Chapus and is considered to be one of the “big four” in the mezzanine market alongside Goldman Sachs, GSO Capital Partners and Highbridge Principal Strategies.

Mezzanine fundraising hit a peak of $41 billion in 2013 but then fell back to $22 billion in 2014 before recovering somewhat to $30 billion last year, according to figures from PDI Research & Analytics.

According to the same data source, there are 11 global and 29 Americas mezzanine funds currently in the market seeking a total of $45 billion. Among these, GSO Capital Opportunities Fund III is seeking $6 billion and Highbridge Principal Strategies – Mezzanine Partners III $5.5 billion.

In December last year, Crescent closed its European Specialty Lending Fund, targeting mid-market private debt investments in Western European companies, on €500 million.

Based in Los Angeles, Crescent also has offices in New York, Boston, Chicago and London.