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Cresset Partners Launches Evergreen Private Credit Fund

January 11, 2023, 08:01 AM
Filed Under: Industry News

Cresset Partners has launched the Cresset Partners Private Credit Fund, LLC (the "Fund"). The Fund invests in a diversified portfolio of private senior secured loans, among other private credit opportunities, with the objective of delivering consistent income and strong downside management.

Private credit is a resilient "all-weather strategy," meaning that it has the potential to generate more attractive risk-adjusted returns relative to traditional fixed income markets, through various economic and market cycles. The Fund will focus on predominantly U.S. middle-market borrowers with EBITDAs between $10 million and $100 million.

Senior secured loans provide a natural and effective hedge against inflation and rising interest rates due to the floating-rate coupon that are typically associated with private loans. Recent market volatility has led to spread widening, providing a compelling environment to deploy capital into private credit. In addition, strong tailwinds exist for private credit due to the significant amount of "dry powder" that remains within private equity funds, providing for a sustained private credit opportunity environment for the foreseeable future.

Cresset has partnered with experienced credit managers to invest through customized vehicles and joint ventures to create a highly diversified portfolio of senior secured loans. Capitalizing on Cresset's scale, investors will benefit from significantly enhanced economic efficiencies to deliver higher cash yields and net returns to investors.

"We are incredibly excited about our private credit fund offering. The demand for private credit continues to grow, driven by the attractive merits of direct lending for both borrowers and investors who lend to private companies. This growing, $1 trillion asset class represents a significant opportunity for our investors," said Executive Managing Director Kevin O'Donnell. "Cresset has utilized our significant scale, along with our deep industry relationships and strong reputation, to provide investors with an institutional-quality solution to invest in private credit."

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