Crescent Capital Finance LLC is a leading alternative credit manager focusing on below investment grade debt. Headquartered in Los Angeles, California, with offices in Boston, Chicago, London, and New York, the firm provides financing solutions to middle market companies across a variety of industries.
Founded in 1991, Crescent Capital began as a unit of Trust Company of the West (TCW), a large asset management firm. In 2011, the team spun out and became an independent entity, allowing them to focus solely on direct lending and alternative credit strategies. This independence gave them increased flexibility and autonomy to navigate the dynamic landscape of the middle market lending space.
The firm’s core investment strategy revolves around providing senior secured loans, unitranche loans, and mezzanine debt to companies with EBITDA ranging from $10 million to $75 million. They generally target companies with strong management teams, defensible market positions, and predictable cash flows. Industries of focus include business services, consumer products, healthcare, industrial manufacturing, and technology. They aim to partner with private equity sponsors and independent companies seeking capital for acquisitions, recapitalizations, growth initiatives, and refinancings.
Crescent Capital differentiates itself through its extensive experience and deep industry knowledge. The investment team comprises seasoned professionals with backgrounds in leveraged finance, private equity, and operations. Their expertise allows them to conduct rigorous due diligence, accurately assess risk, and structure creative financing solutions tailored to the specific needs of each borrower. This emphasis on in-depth analysis and collaborative structuring contributes to a strong track record of consistent returns and low loss rates.
The firm manages capital through various vehicles, including closed-end funds, separately managed accounts, and collateralized loan obligations (CLOs). This diversified approach allows them to cater to a broad range of institutional investors, including pension funds, insurance companies, endowments, foundations, and family offices. Crescent Capital prioritizes building long-term relationships with its investors by maintaining transparency and providing regular updates on portfolio performance and market trends.
Crescent Capital’s commitment extends beyond financial performance. The firm emphasizes responsible investing and incorporates environmental, social, and governance (ESG) factors into its investment process. They believe that considering these factors can enhance long-term value and mitigate risk. They actively engage with portfolio companies to promote sustainable business practices and responsible corporate citizenship.
Overall, Crescent Capital Finance has established itself as a reputable and reliable partner for middle market companies seeking flexible financing solutions. Its experienced team, disciplined investment approach, and commitment to responsible investing position it well for continued success in the evolving landscape of alternative credit.