CRG has closed its third fund and will have approximately $2 billion in capital it can put to work, $1 billion more than its second fund.
The Houston, Texas-based investment firm said Wednesday it closed CRG Partners III with $1.25 billion in equity commitments, the vehicle’s hard-cap. It will gain the additional investable money through debt financing.
Ropes & Gray serves as legal counsel, and Probitas was the placement agent for the fund.
According to the statement, CRG will target transactions between $30 million and $300 million. Limited partners contributing to the fund included East Riding of Yorkshire County Council Pension Fund, according to PDI data. Companies CRG targets have typically up to $100 million in revenue.
The profile of all LPs spanned the globe and included public and private pension funds, sovereign wealth funds and insurance companies. Previous CRG investors upped their pledges for the third fund by an aggregate of 35 percent.
“The market opportunity for healthcare private credit investing remains strong,” firm president Nathan Hukill said in the statement. “Management teams have increasingly turned to debt financing as an alternative source of capital as they have recognised the high cost and dilution associated with equity financing markets.”
The firm’s second fund, Capital Royalty Partners II, announced in May 2013 it had raised $805 million in equity commitments. In January 2015, CRG executed a $167 million securitised term loan – its first such deal – which it used alongside third-party pledges for the fund.