Crestline Investors has closed its third opportunistic credit fund, raising $720 million to pour into small and mid-sized companies in North America along with asset-backed securities.
A source familiar with the situation said it will take the six months to a year for the fund, named Crestline Opportunity Fund III, to get to its $1.3 billion target. This person also said it was the second closing of the fund’s strategy.
Crestline said in a Friday (10 June) statement the fund will make commitments of less than $50 million through direct lending and distressed investments. Keith Williams, who Crestline recently named a partner, will be managing the new fund.
The strategy echoes that employed by its predecessor, Crestline Opportunity Fund II, which closed in March 2014 on $980 million.
As PDI reported earlier, the Arizona Public Safety Personnel Retirement System and the San Joaquin County Employees’ Retirement Association both made commitments to the new Crestline fund, pledging $75 million and $50 million, respectively.
The fund closing, according to the company’s statement, means its opportunistic funds have now raised over $4 billion in capital.
Another one of Crestline’s opportunistic funds, CL Energy Opportunity Fund, along with Sole Source Capital in May made a play for the assets of bankrupt Emerald Oil for $73 million, the Denver debtor said in a US Securities and Commission filing.