Minneapolis-based Castlelake has held an over-subscribed final closing for Castlelake IV LP (Castlelake IV) at its hard cap of $1.9 billion in capital commitments. Investors in the new fund include the usual cast of domestic and international endowments, foundations, family offices, fund of funds, sovereign wealth, and pension funds. Credit Suisse was the placement agent for the fundraise.
The fundraising was completed rapidly and Castlelake IV closed in just five months and is the firm’s third consecutive fund to surpass its target. The firm closed Castlelake II LP in 2012 at $997 million and Castlelake III LP in 2014 at its hard cap of $1.4 billion.
“The successful and swift close of Castlelake IV demonstrates investors’ continued confidence in our team and our unique approach,” said Rory O’Neill, managing partner and chief executive officer of Castlelake. “We look forward to further strengthening our track record of providing value to our investors by pursuing distressed, asset-rich investment opportunities in Europe and the US, as well as opportunities in global aviation and dislocated industries.”
As with earlier funds, Castlelake will invest in distressed assets with some exposure to asset-rich distressed corporate credit. Its main focus areas will be within European distressed assets; US distressed assets – including commercial and industrial loans, small balance commercial real estate loans and residential land; and global aviation assets.
Castlelake was founded in 2005 by Mr. O’Neill and TPG Capital. At that time it was known as TPG Credit Management and changed its name to Castlelake in August 2013.
Castlelake focuses on investments in alternative assets, sub-performing loans, dislocated industries and corporate special situations, as well as aircraft ownership and servicing. The firm manages approximately $7.2 billion in assets on behalf of more than 110 limited partners including endowments, foundations, public and private pension plans, private funds, family offices, insurance companies and sovereign wealth funds. Castlelake’s investment team comprises more than 80 professionals in offices in Minneapolis and London (www.castlelake.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-20-15
