Charlesbank Capital Partners Closes Credit Dislocation Overage Fund
Charlesbank Capital Partners is pleased to announce that it has completed fundraising for Charlesbank Credit Dislocation Overage Fund (“DOF” or the “Fund”). Established in 2020 to take advantage of the compelling investment environment arising from market dislocation, the Fund is a $250 million companion vehicle to Charlesbank Credit Opportunities Fund II (“COF II”), which held a final close in July 2020 with $810 million in total commitments. With the new Fund, Charlesbank further expands its strong credit activity, responding to continued investor demand for its opportunistic approach to middle-market credit. The closing brings Charlesbank’s capital available for credit investments to approximately $1.5 billion and the firm’s total capital raised over the last 12 months to more than $5 billion.
The Fund is focused on the same strategy as COF II, participating in investment opportunities where there is larger capacity available. Both funds will target credit investments in established middle-market companies, primarily in North America and with average enterprise values between $150 million and $2.5 billion. Charlesbank’s credit strategy, launched in 2016, features a distinctive sourcing and diligence approach that harnesses the insights of the Charlesbank platform overlaid on the middle-market credit universe. The credit team is fully integrated into the wider Charlesbank sector teams and is actively investing capital across the spectrum of performing, special situations, and distressed credit opportunities.
“We believe the current environment is the most attractive credit market in the last decade, and that the middle market, with its unprecedented expansion in lending, is especially fertile,” said Sandor Hau, Managing Director and Head of Charlesbank’s Credit team. “The COVID-19 dislocation has hit middle-market businesses particularly hard. DOF brings us added scale, broadens and improves our opportunity set, and positions us well to capitalize on what we expect to be a persistent stress cycle.” The investor base for DOF comprises a range of institutional investors including public pension funds, financial institutions, family offices and asset managers. “We were pleased to have participation by many existing limited partners and also to welcome some new investors to the Charlesbank platform,” said Maggie Sahlman, Head of Investor Relations at Charlesbank. “This closing is the culmination of support for our Credit activities and an endorsement of the team’s experience and ability to identify compelling opportunities. We look forward to continuing to deliver for our investors.”
Monument Group and GrovePeak served as placement agents to Charlesbank on the raising of DOF.
This press release is not an offer or solicitation of an offer, or an invitation or inducement, to invest in any Charlesbank Capital Partners fund. No person may invest in any Charlesbank fund except in accordance with and subject to the terms of the applicable fund documentation and applicable law.
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $15 billion of capital raised since inception. Charlesbank focuses on management-led buyouts and growth capital financings, as well as opportunistic credit and technology investments. The firm seeks to build companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com
