Crayhill Capital Management, a $3 billion alternative asset management firm specializing in asset-based finance, announced the close of Crayhill Principal Strategies Fund III (“Fund III”) with approximately $1.31 billion of capital commitments, including $162 million of committed co-investment capacity, exceeding its $1 billion target.
The oversubscribed flagship Fund III attracted a diversified base of institutional investors, including large public and corporate pension plans, insurance companies, endowments and foundations, and multi-family offices, demonstrating robust institutional appetite for the firm’s differentiated private credit strategies.
“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 utilize our specialized capabilities to help them achieve their investment goals.”
The partner-owned firm offers an alternative to traditional private corporate lending funds, given that its ABF strategy focuses on assets with intrinsic value that can be monetized independently of a borrower’s overall performance. This provides an additional layer of protection for investors. Fund III will leverage Crayhill’s comprehensive ABF platform and risk management infrastructure to capitalize on the rapidly expanding opportunity in private asset-based investments. Demand for private debt has been driven by the regulatory and liquidity burdens of traditional lenders and borrowers’ continued need to invest and expand in a rapidly evolving global economy. Carlos Mendez, Co-Founder of Crayhill, added, “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.”
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. Fund III will target highly-structured investments backed by segregated, cash flowing assets such as loans, leases, royalties, receivables, and power purchase agreements, with a priority on achieving downside protection and a resilient expected return profile. To date, Fund III has deployed over 75% of its available capital to a diverse portfolio of investments.