Crestline Investors, a credit focused institutional alternative asset manager, has held an additional closing of its Crestline Opportunity Fund III strategy, bringing capital in the strategy to USD720 million.
The strategy invests primarily in small to mid-size corporate and asset-based credit-oriented opportunities, with a focus in North America.
The new fund is the ninth in Crestline's series of opportunistic funds, which started in 2005 and have attracted nearly USD4 billion in client commitments to date.
The investment strategy seeks to take advantage of dislocations and inefficiencies in the primary and secondary credit markets in North America and Europe. The fund focuses on under-served or capital constrained asset classes, including SMEs, out-of-favour sectors, companies in transition and stressed or special situations. The fund provides sub-USD50 million capital solutions in the form of direct lending, distressed credit, and structured finance, among others. Crestline Opportunity Fund III will follow the same direct investment strategy as its predecessor, the Crestline Opportunity Fund II strategy, which closed in March 2014 with USD980 million in commitments.
"We seek attractive investment opportunities across credit and opportunistic strategies, and this latest close is a testament to our team's continued success in identifying quality transactions," says Douglas Bratton, Managing Partner & CIO of Crestline. "The firm is on track to close over USD250 million in commitments to investments in these strategies during the first half of 2016."
"There are large numbers of opportunities in the North American and European markets with capital requirements that are not easily addressed by traditional capital providers. We help fill that gap with flexible capital solutions below USD50 million," says Keith Williams (pictured), Partner at Crestline and Senior Portfolio Manager of Crestline Opportunity Fund III.
Crestline's Opportunistic and Credit Strategies group focuses on providing capital solutions to lower middle market and middle market companies, ranging from senior secured loans to junior capital in performing and distressed situations.