Crescent Capital Group, a global alternative credit investment firm, announced the launch of Crescent Private Credit Income Corp., a non-exchange traded, perpetual-life business development company. CPCI’s registration statement on Form N-2 in connection with its initial public offering of common stock has been declared effective by the U.S. Securities and Exchange Commission.
CPCI intends to offer, on a continuous basis, up to $2.5 billion in shares of its Class S, D and I common stock.
Crescent says CPCI is designed to “leverage the scale and breadth” of Crescent’s broader credit platform, which had more than $40 billion in assets under management, as of June 30, 2023.
According to Crescent, CPCI seeks to deliver the company’s credit expertise to investors by providing access to a diversified portfolio consisting primarily of sponsor-backed, directly originated assets, including debt securities and related equity investments, made to or issued by U.S. middle-market companies. CPCI’s primary focus is to invest in companies with annual net income before net interest expense, income tax expense, depreciation and amortization between $35 million and $120 million, although they added that they may invest in larger or smaller companies.
CPCI may also make investments in syndicated loans and other liquid credit opportunities, including in publicly traded debt instruments, for cash management purposes, while also presenting an opportunity for attractive investment returns.
“For over 30 years, Crescent has been at the forefront of middle market direct lending, leveraging its longstanding sponsor origination relationships and disciplined underwriting and investment processes to deliver attractive risk-adjusted returns to a predominately institutional investor base,” said Chris Wright, head of Crescent Private Markets and a director of CPCI.
The company added that Sun Life Capital Management, the institutional alternatives and traditional asset management business of Sun Life and majority owner of Crescent, has committed $150 million to CPCI. SLC Management had assets under management of $273 billion as of June 30, 2023.
Emerson Equity LLC is acting as the intermediary manager for the offering and will engage selected broker-dealers to participate in the distribution of shares to individual investors. Advisors Asset Management is providing wholesaling services to Crescent in respect to CPCI.