Castlelake closes Fund IV on $1.9bn hard-cap

The Minnesota-based PE firm will focus on distressed assets in Europe and US

Minnesota-based Castlelake completed the final closing of Castlelake IV on a $1.9 billion hard-cap after five months of fundraising, a source with knowledge of the situation told Private Equity International.

The fund received commitments from about 60 domestic and international endowments, foundations, family offices, fund of funds, sovereign wealth and pension funds. These were mostly existing investors, the source said.

The firm will continue “pursuing distressed, asset-rich investment opportunities in Europe and the US, as well as opportunities in global aviation and dislocated industries,” Castlelake managing partner and chief executive Rory O'Neill said in statement.

According to the source, the fund has not made any investments to date.

The fund will focus on commercial and industrial loans, small balance commercial real estate loans and residential land and global aviation assets.

Fund IV is the third consecutive Castlelake fund to exceed its target, which was $1.5 billion. Castlelake II, with a 2011 vintage year, beat its $800 million target closing on $996.76 million and Castlelake III closed in 2014 on $1.4 billion, surpassing its $1 billion target.

Castlelake manages about $7.2 billion in assets on behalf of more than 110 endowments, foundations, public and private pension plans, private funds, family offices, insurance companies and sovereign wealth funds, according to the statement.

Credit Suisse served as the exclusive placing agent for the firm.