Charlesbank Capital Partners – a middle-market private investment firm – announced that it has completed fundraising for Charlesbank Credit Opportunities Fund III. This fund closed at $1.5 billion, surpassing its target of $1.25 billion, and includes commitments from a diverse set of existing and new limited partners.
COF III is the successor to Charlesbank’s second credit fund – which has commitments of $1.1 billion, including a companion overage vehicle. 1
As with previous vintages, COF III will follow Charlesbank’s approach of investing in high-quality middle-market companies (principally in North America) with enterprise values between $150 million and $3 billion. The fund invests in various transaction types, offering flexible capital solutions to borrowers across Charlesbank’s core sectors (business and financial services, consumer, healthcare, industrial, and technology & technology infrastructure).
Despite a challenging fundraising environment, COF III benefited from the appetite for credit exposure amongst limited partners and from Charlesbank Credit’s consistent track record of delivering strong risk-adjusted returns since inception. And COF III’s investor base includes public and corporate pensions, endowments, foundations, financial institutions, asset managers, family offices, and high-net-worth individuals.
COF III – which held its final close on January 5, 2024 – will maintain its strategy of investing across the capital structure and leveraging the benefits of Charlesbank cross-platform collaboration to drive returns. And since the inception of the Charlesbank Credit Opportunities strategy, the team has invested over $4 billion in capital.
KEY QUOTES:
“The breadth of Charlesbank’s private equity platform enables us to construct high quality credit portfolios based on detailed, fundamental insights about a deep opportunity set of attractive middle market companies. We leverage our differentiated conviction across the entire spectrum of opportunistic credit, including primary, secondary, performing, special situations and distressed opportunities. Our approach combines our proprietary knowledge with the flexibility necessary to seek the most attractive risk-adjusted returns for our investors in any market environment.”
– Sandor Hau, Managing Director and Head of Credit at Charlesbank
“We are grateful for the support and confidence of our existing and new investors, which led to our success in closing COF III above our target. We believe that our proven track record, all-weather strategy and the attractiveness of the opportunistic credit environment resonated with a wide range of capital allocators.”
– Jina Moon, Senior Vice President of Investor Relations at Charlesbank
