Crescent Capital Group LP, an alternative credit investment firm, announced the final closing of its third European specialty lending fund, Crescent European Specialty Lending Fund III, with total investable capital of approximately “€3 billion, including targeted leverage and separately managed accounts investing alongside the fund.”
The fund has levered and unlevered sleeves. CESL III was “oversubscribed, exceeding its initial target of €2 billion.”
This fundraise represents a significant increase “from its predecessor fund, Crescent European Specialty Lending Fund II, which announced its final close in April 2020 at €1.8 billion of investable capital.”
CESL III attracted a diverse mix of international institutional investors including “global pension funds, insurance companies, financial institutions, foundations, and endowments.”
The fund will continue Crescent’s strategy of investing primarily in a diversified portfolio of private secured debt securities “issued by European companies, with a focus on directly-originated transactions.”
CESL III is actively investing and has “committed approximately €800 million across 16 transactions.”
Christine Vanden Beukel, Managing Director and Head of Crescent’s European Specialty Lending Strategy said:
“The successful closing of our third European specialty lending fund is a testament to Crescent’s commitment to providing flexible capital solutions to middle market European companies. As one of the early entrants into direct lending in Europe, we have developed a longstanding track record of consistent and strong performance as well as extensive relationships with the sponsor, advisor and corporate communities across Europe,”
“We are deeply grateful for the support from both our new and existing investors, and we are excited to leverage this momentum to continue delivering value in this dynamic and evolving market.”
Crescent’s European Specialty Lending strategy began investing in Europe in 2014 and provides financing “to private equity-backed European middle market companies typically with EBITDA of €5 million to €25 million.”
Crescent European Specialty Lending provides “flexible loan solutions to support leveraged buyouts, acquisition financing, refinancings and recapitalizations to companies across Western Europe.”
To date, Crescent has committed nearly “€4 billion across more than 70 investments in Europe.”
As noted in the update, Crescent is a credit investment manager “with $46 billion of assets under management as of December 31, 2024.”
For over 30 years, the firm has focused on below “investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities.”
Crescent is headquartered in Los Angeles with “offices in New York, Boston, Chicago and London with more than 230 employees globally.”
Crescent is a part of SLC Management, “the institutional alternatives and traditional asset management business of Sun Life.”