Dechert Advises Crescent Capital Group on Closing of US$6 Billion Crescent Direct Lending Fund III
Dechert advised Crescent Capital Group LP on the successful close of its third direct lending fund, Crescent Direct Lending Fund III (CDL Fund III), raising US$6 billion in investable capital including targeted leverage and separately managed accounts investing alongside the fund.
CDL Fund III was significantly oversubscribed, exceeding its initial target by over US$1 billion, with total equity commitments of US$3.2 billion and US$1 billion in targeted leverage. The fund was more than double the size of its predecessor fund, Crescent Direct Lending Fund II, which closed in November 2018 with US$1.6 billion in equity commitments. The fund attracted a diverse mix of U.S. and international institutional investors including leading insurance companies, pension funds, financial institutions, foundations, and endowments. CDL Fund III is actively investing and has issued US$1.6 billion of senior loan commitments to date.
Crescent Capital Group invests at all levels of the capital structure, with a significant focus on below investment grade credit through strategies that invest in senior bank loans, unitranche loans, high yield debt, mezzanine debt, and other private debt securities. As of December 31, 2021, Crescent Capital Group managed approximately US$38 billion of privately originated debt investments and marketable securities.
The Dechert team that advised Crescent Capital Group includes financial services and investment management partners Carl de Brito, Lindsay Trapp, Michael Sherman and Angelo Lercara, counsels Simon Wright and Audrey Wagner, and associates Nadeea Zakaria, Stephen Nolan, Tyler Payne, Paul Sweeney and Jooyoon Chang, and foreign legal consultant Barbara Cronin; finance partners Christopher Desmond and Alon Goldberger and associate Meghan Redding; tax partners Ari Zak and Elizabeth Guidi and associate Mansi Seth; and employee benefits partner Andrew Oringer.
Dechert is a leading global law firm with 22 offices around the world. The firm advises on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.