Weekly Recap: Leading Fundraising Developments in the Private Equity Sector

In the dynamic world of private equity, Crescent Capital Group and BlackRock are making significant moves in their respective strategies.

Crescent Capital Group, a well-known player in the industry, is preparing to maintain its control over loan portfolios by creating a $3 billion credit continuation fund. This fund, designed to extend Crescent Capital Group's hold on loan portfolios, is a testament to the growing trend among private equity firms seeking alternative financing.

The fund, which aims to move assets from Crescent Capital Group's 2017 fund, Crescent Mezzanine Partners VII, is expected to be supplemented by a restructuring of assets from the 2017 fund into the credit continuation fund. This is not the first time Crescent Capital Group has created a credit continuation fund, indicating a strategic approach in managing its assets.

Meanwhile, BlackRock, the world's largest asset manager, has paused fundraising for its third Asia-Pacific private credit vehicle. This pause is due to BlackRock integrating its $12 billion acquisition of HPS Investment Partners, and internal discussions with HPS executives on how to proceed are expected in the coming months.

The Gulf Cooperation Council (GCC) region, on the other hand, is set to serve as both a gateway for Chinese firms into Middle Eastern markets and a launchpad for further international expansion. CICC Capital and BlueFive Capital are planning to establish a private equity fund focused on Chinese new economy companies in this region. The exact fund size and asset mix will be finalised through negotiations with investors, with the fund initially targeting $1 billion before being halted.

The fund will target high-growth sectors including technology, digital transformation, green energy, advanced manufacturing, and consumer-driven industries. It will be used to back strategies such as continuation funds, reflecting the growing need for private equity firms to manage liquidity pressures through alternative financing.

Eldridge Capital Management, a Los Angeles-based credit manager, is also aiming to raise $1 billion for a new GP-solutions fund. However, the firm declined to comment on the matter.

As the private equity landscape continues to evolve, it's clear that alternative financing strategies are becoming increasingly popular. Crescent Capital Group's move to create a credit continuation fund and BlackRock's pause in fundraising are just a few examples of this trend. It will be interesting to see how these developments unfold in the coming months.