Charlesbank’s New Credit Fund Hits Hard Cap

Charlesbank Capital Partners has held a $700 million, oversubscribed, and hard cap closing of Charlesbank Credit Opportunities Fund II LP. The new fund’s original target was $500 million.

Fund II has more than 30 institutional limited partners including public and corporate pensions, endowments, foundations, financial institutions, asset managers and family offices, as well as high net worth individuals.

“We are grateful for the support and confidence in Charlesbank from our investors, both existing and new, and are pleased with the success of this fundraising, particularly during these unprecedented times,” said Maggie Sahlman, the head of investor relations at Charlesbank.

The new fund will make credit investments in North America-based middle-market companies with enterprise values between $150 million and $1.5 billion.

“Our credit strategy is particularly well-suited to the current investment environment and we have a strong capital base to invest in the compelling credit opportunities in our pipeline,” said Brandon White, a managing director at Charlesbank and co-chair of the credit investment committee.

In 2016, Charlesbank launched its credit strategy which parallels the criteria of its private equity platform by investing in companies with similar enterprise values that are active in the consumer, industrial, industrial services and distribution, TMT, and business services sectors.

“We believe the attractiveness of our credit strategy stems from our differentiated investment approach which leverages Charlesbank’s proprietary insights, extensive network and strong diligence capabilities in a fully integrated investment process,” said Sandor Hau, a managing director at Charlesbank and the head of the firm’s credit team. “We expect to see continued opportunity to invest in mispriced credit risk and look forward to putting our investors’ capital to work with the goal of generating attractive, risk-adjusted returns.”

Monument Group and GrovePeak were the placement agents for Charlesbank on the raising of the new credit fund.

Charlesbank has offices in Boston and New York City. In October 2017, the firm held a final closing of Charlesbank Equity Fund IX LP at its hard cap of $3 billion. Charlesbank also launched a technology strategy in 2019 and closed its first technology fund in January 2020 with $700 million in limited partner commitments.

Private Equity Professional | July 8, 2020

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