Crescent has successfully closed its latest credit secondary fund at $3.2 billion, marking the largest such fund in the sector's history. The capital will be deployed across a diversified portfolio of distressed and non-performing loans, private credit assets, and structured credit instruments.
- Crescent raised $3.2 billion for its latest credit secondary fund, the largest in the sector’s history.
- The fund targets distressed and non-performing loans, private credit assets, and structured credit instruments.
- Investors include major institutional players such as pension funds and sovereign wealth funds.
- Capital will be deployed across North America and Europe, focusing on underperforming debt and restructuring cases.
- This marks a strategic expansion by Crescent into broader credit secondary strategies beyond buyout-related assets.
Crescent has announced the final close of its newest credit secondary fund, raising $3.2 billion in investor commitments—a record high for a single credit-focused secondary fund. This milestone positions Crescent as a dominant player in the secondary credit market, where investors increasingly seek alternative avenues for risk-adjusted returns amid shifting macroeconomic conditions. The fund’s $3.2 billion size reflects strong demand from institutional investors, including pension funds, sovereign wealth funds, and insurance companies. These entities have shown growing appetite for credit assets with embedded value, particularly those acquired at discounts to par through secondary market transactions. The capital will be allocated across a range of asset classes, including senior secured loans, mezzanine debt, and legacy distressed positions originating from prior private equity and credit fund portfolios. With this fund, Crescent expands its platform beyond traditional buyout-related secondaries into more complex credit strategies. The firm plans to deploy capital across North America and Europe, targeting opportunities in underperforming corporate debt, restructuring cases, and re-liquidated asset-backed securities. The scale of the fund allows for greater diversification and enhanced risk mitigation compared to smaller counterparts. Market participants note that the success of this fund underscores confidence in the credit secondary space, which has seen increasing volume over the past three years. It also highlights the growing role of specialized firms like Crescent in facilitating capital recycling and providing liquidity to primary fund managers seeking to exit legacy positions.