Crescent raises $3.5bn for mezz vehicle

The latest junior debt fund, like its predecessor, closed above target.

Crescent Capital has locked down $3.54 billion for its Crescent Mezzanine Partners VII, according federal filings submitted 16 December with the US Securities and Exchange filings.

The Los Angeles-based investment firm, which set a $3 billion initial goal for the seventh mezzanine vehicle, rounded up capital from limited partners that re-upped their commitments from Mezzanine Partners VI.

Those included the Michigan Department of Treasury and the Florida State Board of Administration, who each committed $150 million, according to Private Debt Investor data. The sixth vehicle closed at $3.44 billion after setting a $2.5 billion target.

New investors to the seventh funds included 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.

Crescent’s fund is just the latest in a series of massive junior debt funds that have passed their targets. HPS Investment Partners on Tuesday closed a $6.6 billion mezzanine debt fund, while GSO Capital Partners and the Carlyle Group have also raised multibillion mezzanine vehicles.

First Avenue Partners served as placement agent for the fund.