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Crestline Investors hauls in over $1bn for new fund providing PE firms capital for portfolio businesses

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Credit-focused Crestline Investors has raised more than $1bn in commitments to close its second fund complex focused on fund finance, including NAV loans and preferred equity offerings.

The oversubscribed fund will be used to support private equity funds and other private asset vehicles seeking additional capital to support, grow and protect underlying portfolio companies, and to support strategic initiatives at the private equity management level.

Crestline partner David Philipp, the co-head of the firm’s fund liquidity solutions team, said, “This fund closing is the latest example of our commitment to being innovators in the credit markets by identifying and pursuing high quality investment opportunities for our clients while also offering flexible and accretive capital to a wide range of sponsors.

“The closing of Portfolio Financing Fund II represents a natural extension of our fund liquidity solutions offering and enables us to fund our significant pipeline of investment opportunities across private equity, real estate and infrastructure funds.”

Amit Mahajan, managing director and fellow co-head, added, “By bringing together a mix of deeply experienced investment professionals across structured finance, secondaries, restructurings, direct investing, valuations and credit markets, we’ve been able to develop a specially tailored team to build and execute on this strategy.

“Recent market environments have created dislocations and opportunities across the private markets. NAV loans and other fund financing products have increasingly become a valuable and accepted portfolio management tool for sponsors and their LPs.”

Crestline said that since inception the team has closed 38 transactions with more than $1.5bn in commitments placed through commingled vehicles, separately managed accounts and co-investment structures.

In 2019 the firm raised $360m for the final close of its first European opportunity fund, Crestline Opportunity Fund III Europe.

Crestline currently has about $13.8bn under management.

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