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Crescent Capital destroys $2.5bn target for first fund since TCW spin-out

6 Aug 2013

explosion explodeCredit investor Crescent Capital Group has obliterated the $2.5bn target for its first fund since spinning out of TCW Group two years ago by raking in $3.4bn of commitments.

Crescent Mezzanine Partners VI is easily the largest credit mezzanine fundraise the firm has ever been involved in, trumping the $2.8bn it last gathered while still a captive part of TCW in 2008.

AltAssets revealed in April that the firm had already hit that figure for the new vehicle, continuing a pacey fundraise which saw it hold a $1bn first close in April 2012 after just a few months on the road.

The latest vehicle is larger than the firm’s 2006 and 2001 vehicles combined, and tallies with rising opportunities in structured lending as banks pull away from loans following the global financial crash.

Crescent co-founder and managing partner Jean-Marc Chapus said he believed the firm’s experience sourcing and investing $10bn of capital for more than 150 mezzanine transaction over the past two decades had persuaded investors to commit to the fund.

The firm typically targets investments in private equity-backed companies with enterprise values of more than $250m.

Credit Suisse Securities, TCW Funds Distributors, Merrill Lynch, Pierce, Fenner & Smith Incorporated and France’s Finamvest all acted as placement agents for the vehicle.

Earlier this year JPMorgan-owned alternative asset manager Highbridge Capital Management raised the biggest mezzanine debt vehicle since the financial crisis.

The $5bn vehicle, the third-largest of its type ever raised, will use about half its capital financing private equity-backed buyouts according to the FT, with the rest used for straight corporate financing.

That fund outstripped the $4bn mezzanine fund raised by buyout giant Blackstone through its GSO Capital Partners credit arm in early 2012.

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