Fast fundraise for Australia’s Crescent secures $588m

Offshore LPs, predominantly North American pensions and endowments, made up 60% of the fund’s investor base.

Crescent Capital Partners, a Sydney-based mid-market firm, has hit its A$800 million ($588 million; €508 million) target for its sixth fund after less than four months in market.

The firm began fundraising for Crescent Capital Partners Fund VI in April this year, had a first close on around A$680 million in May and secured commitments at its target by July, two sources with knowledge of the matter told Private Equity International.

Fund VI attracted a lot of interest from offshore investors, the sources said. LPs in the new fund are mainly pension funds and endowments from North America, as well as some fund of funds. It also received strong interest from Asia-based LPs, particularly in Japan, and Europe. Meanwhile Australia-based investors made up 40 percent of the LP base.

The vehicle is the firm’s largest fund to date. It closed Fund V at the hard-cap of A$675 million in 2015.

PEI understands that existing investors committed more capital to Fund VI. One source noted that the increase in fund size was to allow investors that Crescent had had to scale back in Fund V to increase their commitments to the new vehicle.

Fund VI will follow the same strategy as its predecessors. Capital raised will be invested in the small to mid-cap space, targeting mainly Australia and New Zealand-based companies. Similar to Fund V, a small part of its investment mandate allows the firm to invest in Asian companies looking to grow their business in Australia and New Zealand.

Crescent has already secured its first deal for the fund, investing an undisclosed sum in health staff recruiter Healthcare Australia.

The firm declined to comment on fundraising.