Exceeding its $1.25 billion target, COF III invests using an all-weather strategy that leverages Charlesbank’s private equity ecosystem
Charlesbank Capital Partners (“Charlesbank”), a middle-market private investment firm, announced today that it has successfully completed fundraising for Charlesbank Credit Opportunities Fund III (“COF III” or the “Fund”). The Fund closed at $1.5 billion, surpassing its target of $1.25 billion, and includes commitments from a diverse set of existing and new limited partners. COF III is the successor to Charlesbank’s second credit fund, which has commitments of $1.1 billion, including a companion overage vehicle.1
As with previous vintages, COF III will follow Charlesbank’s approach of investing in high-quality middle-market companies, principally in North America, with enterprise values ranging between $150 million and $3 billion. The Fund invests in a wide array of transaction types offering flexible capital solutions to borrowers across Charlesbank’s core sectors (business and financial services, consumer, healthcare, industrial and technology & technology infrastructure).
“The breadth of Charlesbank’s private equity platform enables us to construct high quality credit portfolios based on detailed, fundamental insights about a deep opportunity set of attractive middle market companies. We leverage our differentiated conviction across the entire spectrum of opportunistic credit, including primary, secondary, performing, special situations and distressed opportunities,” said Sandor Hau, Managing Director and Head of Credit at Charlesbank. “Our approach combines our proprietary knowledge with the flexibility necessary to seek the most attractive risk-adjusted returns for our investors in any market environment.”
Despite a challenging fundraising environment, COF III benefited from growing appetite for credit exposure amongst limited partners, as well as from Charlesbank Credit’s consistent track record of delivering strong risk-adjusted returns since inception. COF III’s investor base includes public and corporate pensions, endowments, foundations, financial institutions, asset managers and family offices, as well as high-net-worth individuals.
“We are grateful for the support and confidence of our existing and new investors, which led to our success in closing COF III above our target,” said Jina Moon, Senior Vice President of Investor Relations at Charlesbank. “We believe that our proven track record, all-weather strategy and the attractiveness of the opportunistic credit environment resonated with a wide range of capital allocators.”
COF III, which held its final close on January 5, 2024, will maintain its strategy of investing across the capital structure and leveraging the benefits of Charlesbank cross-platform collaboration to drive returns. Since the inception of the Charlesbank Credit Opportunities strategy, the team has invested over $4 billion in capital.
This press release is not an offer or solicitation of an offer, or an invitation or inducement, to invest in any Charlesbank Capital Partners fund. No person may invest in any Charlesbank fund except in accordance with and subject to the terms of the applicable fund documentation and applicable law.
1. Capital amounts include commitments made to all related vehicles, including the General Partner, and committed leverage for COF III.