Exclusive: Crescent targets $3bn for next mezz fund

Crescent is setting a more ambitious target for its latest mezzanine fund after busting through its $2.5bn target last time around, PDI has exclusively learned.  

Crescent Capital Group, the Los Angeles-headquartered alternative investment firm, has started marketing its newest mezzanine fund, according to LPs that have heard the pitch. The Crescent Mezzanine Fund VII is said to be seeking $3 billion.

Crescent declined to comment.

The last Crescent Mezzanine Fund VI closed at $3.4 billion in August 2013, almost a billion above its original target, which was set at $2.5 billion. The Crescent Mezzanine Group provides capital to private equity sponsors and management teams to complete leveraged buyouts, acquisitions, recapitalizations and later-stage growth financings. The group targets investments in companies that have enterprise values in excess of $250 million. 

The firm is also in the process of raising the Crescent European Specialty Lending fund, its first Europe-focused debt strategy, as PDI previously reported. That fund is targeting €500 million and aiming for a final close before year-end. 

In addition to its Los Angeles headquarters, Crescent has offices in Boston, London and New York. The firm invests at all levels of the capital structure, with a particular focus on below investment grade credit through strategies targeting senior bank loans, high-yield debt, mezzanine debt, distressed debt and other private debt securities. As of June 30, Crescent Capital managed about $18 billion in assets.