CHICAGO – Jan. 10, 2022 —Cresset Partners has launched the Cresset Partners Private Credit Fund, LLC (the “Fund”). The Fund invests in a diversified portfolio of private senior secured loans, among other private credit opportunities, with the objective of delivering consistent income and strong downside management.
Private credit is a resilient “all-weather strategy,” meaning that it has the potential to generate more attractive risk-adjusted returns relative to traditional fixed income markets, through various economic and market cycles. The Fund will focus on predominantly U.S. middle-market borrowers with EBITDAs between $10 million and $100 million.
Senior secured loans provide a natural and effective hedge against inflation and rising interest rates due to the floating-rate coupon that are typically associated with private loans. Recent market volatility has led to spread widening, providing a compelling environment to deploy capital into private credit. In addition, strong tailwinds exist for private credit due to the significant amount of “dry powder” that remains within private equity funds, providing for a sustained private credit opportunity environment for the foreseeable future.
Cresset has partnered with experienced credit managers to invest through customized vehicles and joint ventures to create a highly diversified portfolio of senior secured loans. Capitalizing on Cresset’s scale, investors will benefit from significantly enhanced economic efficiencies to deliver higher cash yields and net returns to investors.
“We are incredibly excited about our private credit fund offering. The demand for private credit continues to grow, driven by the attractive merits of direct lending for both borrowers and investors who lend to private companies. This growing, $1 trillion asset class represents a significant opportunity for our investors,” said Executive Managing Director Kevin O’Donnell. “Cresset has utilized our significant scale, along with our deep industry relationships and strong reputation, to provide investors with an institutional-quality solution to invest in private credit.”
Learn more about the Cresset Partners Private Credit Fund.
The Fund is an open-end fund with an indefinite term. Due to restrictions on transfer, the illiquidity of the Interests, and the possibility that Redemption Requests may remain unfulfilled or are expected to be paid out over time as described in the offering materials, investors may be unable to cash out of the Fund for an extended period of time, or even indefinitely.
Investing involves risk. There can be no assurance that the Fund will achieve its investment or performance objectives, including the return of capital and/or the achievement of targeted returns. The Underlying Vehicles may similarly fail to meet their investment objectives. The possibility of a partial or total loss of the Fund’s capital exists.
Each of the Fund’s investments in the Underlying Vehicles will be an illiquid and long-term investment, and there can be no assurance that the Fund will be able to realize the value of such investment or otherwise be able to effect a successful realization event or exit strategy.
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