New Hampshire Retirement System has approved a $50 million commitment to Crescent Capital Group's recently launched credit fund, Private Debt investor has learned.
The NHRS investment committee agreed to commit to Crescent Direct Lending Fund II during its June meeting, a spokesman for the pension plan confirmed. Funding will come from NHRS cash account as capital is called. The pension plan had previously committed $50 million to the Crescent Direct Lending Fund I. NHRS declined to comment.
Crescent is seeking $1 billion for its latest direct lending vehicle with both levered and unlevered sleeves, according to documents obtained by PDI.
Crescent Direct Lending Fund II will invest in senior secured first lien and unitranche financings to US mid-market companies with private equity sponsors. The fund has a six-year life, which includes a four-year investment period. The vehicle also has the possibility of two possible one-year extensions.
The unlevered sleeve of the fund is targeting a net internal rate of return of 7-9 percent and a net multiple of amount invested at 1.2x to 1.3x, a memorandum to the New Hampshire pension investment committee reads. Meanwhile, the levered fund has set slightly higher targets for net IRR and multiple of 10-12 percent and 1.3x to 1.4x, respectively.
The unlevered sleeve carries a management fee of 1 percent on invested assets and no incentive fee, according to a document from the City of Fresno Retirement Systems. The levered sleeve has a management fee of 0.75 percent of invested assets and an incentive fee of 10 percent.
Crescent Direct Lending Fund I also had levered and unlevered options. The levered option held a final close in September 2015 on $602 million, which included leverage, the same documents show. The unlevered option of Fund I closed on $386 million.
As of the end of last year, the Crescent direct lending platform had invested a total of $1.8 billion across its direct lending funds and separately managed accounts since 2005.
Crescent declined to comment.
Crescent has over $24 billion in assets under management as of 31 March, according to its website.
Editor's note: This article has been updated to include the NHRS investment committee's approval of its Fund II commitment.