Key Takeaways
- • Crescent Capital Group launched Crescent Private Credit Income Corp. (CPCI), a non-exchange traded, perpetual-life business development company, with a $150 million seed commitment from SLC Management, according to Business Wire.
- • CPCI's Form N-2 registration statement for its initial public offering of common stock has been declared effective by the U.S. Securities and Exchange Commission.
- • The fund is offering up to $2.5 billion in Class S, D and I common shares on a continuous basis, distributed through Emerson Equity LLC as intermediary manager on a best-efforts basis.
- • CPCI targets sponsor-backed, directly originated debt and related equity in U.S. middle-market companies with EBITDA between $35 million and $120 million.
- • As of October 2, 2023, CPCI was available in 33 states and territories, with a number of major states, including California, New York's neighbors Massachusetts and New Jersey, Texas and Florida, excluded.
Summary
Crescent Capital Group, a Los Angeles-based alternative credit manager, announced the launch of Crescent Private Credit Income Corp. (CPCI), a non-exchange traded, perpetual-life business development company (BDC), according to a Business Wire release dated October 2, 2023. The fund's Registration Statement on Form N-2 for its initial public offering of common stock has been declared effective by the U.S. Securities and Exchange Commission.
Sun Life Capital Management (SLC Management), the institutional alternatives and traditional asset management business of Sun Life and majority owner of Crescent, has committed $150 million to CPCI as seed capital. SLC Management reported assets under management of $273 billion as of June 30, 2023. Crescent reported over $40 billion in assets under management and more than 210 employees, including over 100 dedicated investment professionals, as of the same date.
CPCI seeks to provide access to a diversified portfolio consisting primarily of sponsor-backed, directly originated assets, including debt securities and related equity, issued by U.S. middle-market companies. Its primary focus is companies with EBITDA between $35 million and $120 million, although it may invest in larger or smaller companies. The fund may also invest in syndicated loans and other liquid credit, including publicly traded debt, for cash management purposes.
The fund is externally managed by an affiliate of Crescent, with Crescent Cap NT Advisors, LLC serving as investment adviser. Chris Wright, Head of Crescent Private Markets and a Director of CPCI, said Crescent has been active in middle-market direct lending for over 30 years. Jason Breaux, CEO of Crescent Capital BDC, Inc. (NASDAQ: CCAP) and Chairman of CPCI's board, said the fund offers individual investors access to the Crescent platform with a focus on current income and downside protection. Eric Hall and Ray Barrios, CEO and President of CPCI respectively, cited growing middle-market borrower demand for flexible capital.
Emerson Equity LLC is acting as intermediary manager on a best-efforts basis and will engage selected broker-dealers to distribute shares to individual investors, with Advisors Asset Management providing marketing and wholesaling services. The offering is available only in states where Emerson Equity is registered. The release flags risks including limited operating history, illiquidity, a blind-pool structure, leverage, limited share repurchases and no assurance of distributions.
Sun Life Capital Management (SLC Management), the institutional alternatives and traditional asset management business of Sun Life and majority owner of Crescent, has committed $150 million to CPCI as seed capital. SLC Management reported assets under management of $273 billion as of June 30, 2023. Crescent reported over $40 billion in assets under management and more than 210 employees, including over 100 dedicated investment professionals, as of the same date.
CPCI seeks to provide access to a diversified portfolio consisting primarily of sponsor-backed, directly originated assets, including debt securities and related equity, issued by U.S. middle-market companies. Its primary focus is companies with EBITDA between $35 million and $120 million, although it may invest in larger or smaller companies. The fund may also invest in syndicated loans and other liquid credit, including publicly traded debt, for cash management purposes.
The fund is externally managed by an affiliate of Crescent, with Crescent Cap NT Advisors, LLC serving as investment adviser. Chris Wright, Head of Crescent Private Markets and a Director of CPCI, said Crescent has been active in middle-market direct lending for over 30 years. Jason Breaux, CEO of Crescent Capital BDC, Inc. (NASDAQ: CCAP) and Chairman of CPCI's board, said the fund offers individual investors access to the Crescent platform with a focus on current income and downside protection. Eric Hall and Ray Barrios, CEO and President of CPCI respectively, cited growing middle-market borrower demand for flexible capital.
Emerson Equity LLC is acting as intermediary manager on a best-efforts basis and will engage selected broker-dealers to distribute shares to individual investors, with Advisors Asset Management providing marketing and wholesaling services. The offering is available only in states where Emerson Equity is registered. The release flags risks including limited operating history, illiquidity, a blind-pool structure, leverage, limited share repurchases and no assurance of distributions.
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