Crescent Capital Group has closed its second captive collateralized loan obligation equity fund with $232 million in commitments, more than doubling the size of the firm’s first vehicle in the strategy.
Crescent CLO Equity Funding II attracted institutional investors including global insurance companies and pension funds.
Its predecessor, Crescent CLO Equity Funding I, closed in 2018 with $103 million in commitments.
The second fund will invest primarily in control positions in CLOs managed by Crescent.
The strategy also has flexibility to opportunistically purchase debt issued by Crescent CLOs and invest in third-party CLOs.
Crescent’s history in the CLO market dates to 1993, giving the firm more than three decades of experience in the asset class.
The fund closing expands a broader credit platform encompassing both marketable and privately originated debt securities.
Crescent invests across senior bank loans, high-yield bonds, private senior debt, unitranche financing and junior debt.
The firm managed approximately $53 billion in assets as of June 30, 2026.
Crescent employs more than 240 people globally, with offices in Los Angeles, New York, Boston, Chicago, London and Frankfurt. The company is part of SLC Management, Sun Life’s institutional alternatives and traditional asset management business.
The new fund provides Crescent with dedicated capital to maintain control equity positions in its CLO issuance while giving investors access to a strategy tied directly to the firm’s broader credit sourcing, underwriting and structuring capabilities.
The jump from $103 million in the first fund to $232 million in Fund II also indicates a substantial increase in institutional commitments despite what Crescent described as a competitive fundraising environment.
KEY QUOTES:
“Despite a competitive fundraising environment, this close reflects the continued evolution of our CLO issuance strategy and the growing conviction we are seeing from investors across the institutional landscape.”
Nilesh Mandhare, Managing Director, Head And Portfolio Manager For Crescent’s CLO Issuance Strategy
“CLOs are an increasingly important component of our broader credit platform, bringing together our investment expertise, structuring capabilities, and longstanding institutional relationships.”
John Fekete, Managing Director And Head Of Tradeable Credit At Crescent
