Bloomberg reports Cerberus Capital Management LP, the private-equity firm led by Stephen Feinberg, has raised $1.32 billion for a middle-market loan fund that will seek to take advantage of a pullback in lending.

One of Cerberus Levered Loan Opportunities Fund II LP’s first investments is expected to be a group of loans issued by a company that the firm has invested in through another fund, according to the private-placement memorandum, a copy of which was obtained by Bloomberg News. Cerberus expects to close the fund in May, the document shows.

Cerberus’s levered-loan fund is targeting $1.25 billion with a $1.5 billion limit, compared with the $814 million gathered by its predecessor, according to the Pennsylvania Public School Employees’ Retirement System, which in September disclosed that its investment staff recommended a $225 million commitment to the fund. The Cerberus document doesn’t mention a target.

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