Crayhill Capital Management, an alternative asset manager specialising in asset-based finance, has closed its Principal Strategies Fund III with $1.31bn (£980m) of capital commitments.
This includes $162m of committed co-investment capacity, and exceeds Crayhill’s $1 billion target.
The oversubscribed flagship Fund III attracted a diverse array of institutional investors, including large public and corporate pension plans, insurance companies, endowments and foundations, and multi-family offices.
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“We are grateful for the overwhelming support we received from existing investors and strong demand from new limited partners,” said Josh Eaton, co-founder of Crayhill.
“We look forward to working with all of our valued investors as we utilise our specialized capabilities to help them achieve their investment goals.”
Fund III focuses on providing capital solutions to specialty finance platforms and other asset-heavy companies across sectors including residential housing, energy, commercial real estate, media, and digital infrastructure.
It will target highly-structured investments backed by segregated, cash flowing assets such as loans, leases, royalties, receivables, and power purchase agreements.
Its priority will be downside protection and a resilient expected return profile.
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To date, Fund III has deployed over 75 per cent of its available capital to a diverse portfolio of investments.
Crayhill Capital Management is a $3bn, independent investment adviser specialising in asset-based finance. Since its founding in 2015, the firm has deployed over $4bn across more than 50 transactions, it said.
The partner-owned firm offers an alternative to traditional private corporate lending funds, with its ABF strategy focusing on assets with intrinsic value that can be monetized independently of a borrower’s overall performance.
Fund III will leverage Crayhill’s ABF platform and risk management infrastructure to capitalize on the rapidly expanding opportunity in private asset-based investments.
“As the current market uncertainty constrains liquidity and drives up base rates and credit spreads, our ready capital provides counterparties certainty of execution for financing assets that justify a premium,” Carlos Mendez, co-founder of Crayhill, said.
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