Crescent Capital Group, an alternative credit investment firm, launched Crescent Private Credit Income (CPCI), a non-exchange traded, perpetual-life business development company (BDC). CPCI’s Registration Statement on Form N-2 in connection with its initial public offering of common stock has been declared effective by the U.S. Securities and Exchange Commission.
CPCI is designed to leverage the scale and breadth of Crescent Capital’s broader credit platform, which had more than $40 billion in assets under management and more than 210 employees, including more than 100 dedicated investment professionals, as of June 30, 2023. CPCI seeks to deliver Crescent Capital’s credit expertise to investors by providing access to a diversified portfolio consisting primarily of sponsor-backed, directly originated assets, including debt securities and related equity investments, made to or issued by U.S. middle-market companies. CPCI’s primary focus is to invest in companies with annual net income before net interest expense, income tax expense, depreciation and amortization between $35 million and $120 million (although it may invest in larger or smaller companies). CPCI may also make investments in syndicated loans and other liquid credit opportunities, including in publicly traded debt instruments, for cash management purposes, while also presenting an opportunity for attractive investment returns.
“For over 30 years, Crescent has been at the forefront of middle market direct lending, leveraging its longstanding sponsor origination relationships and disciplined underwriting and investment processes to deliver attractive risk-adjusted returns to a predominately institutional investor base,” Chris Wright, head of Crescent Private Markets and a director of CPCI, said.
“We believe the launch of CPCI provides individual investors access to the scale, investing acumen and experience of the Crescent platform and team, and offers a compelling value proposition as a product that has the potential to deliver attractive levels of current income with a focus on downside protection throughout market cycles,” Jason Breaux, CEO of Crescent Capital BDC and Chairman of the Board of CPCI, said.
“The growing demand for capital from middle-market borrowers has created an even greater need for flexible capital providers like Crescent. We believe CPCI further augments our relevance in the market and creates a unique opportunity for investors to capitalize on this long-term trend,” Eric Hall and Ray Barrios, CEO and president of CPCI, respectively, said in a joint statement.
Reflecting its conviction in the middle-market direct lending asset class and Crescent Capital’s ability to deliver attractive risk-adjusted returns, Sun Life Capital Management (SLC Management), the institutional alternatives and traditional asset management business of Sun Life and majority owner of Crescent Capital, has committed $150 million to CPCI. SLC Management had assets under management of $273 billion as of June 30, 2023.
Emerson Equity is acting as the intermediary manager for the offering on a best-efforts basis and will engage selected broker-dealers to participate in the distribution of shares to individual investors. Advisors Asset Management, member FINRA and SIPC, is providing marketing and wholesaling services to Crescent Capital with respect to CPCI and will be a resource for the broker-dealers engaged to participate in the distribution of shares to individual investors. The securities offering is only available in states where Emerson Equity is registered.
