(Bloomberg) -- Crayhill Capital Management LP raised $820 million for an asset-based loan fund, drawing more than enough demand from investors seeking greater exposure to the burgeoning private credit market.
Principal Strategies II, Crayhill's second fund of this type, surpassed its target of $500 million, according to a statement viewed by Bloomberg. Investors included public and corporate pension plans, insurance companies, foundations and endowments, said Crayhill, a minority-owned alternative asset management firm.
The fund will invest in loans backed by assets in renewable energy, trade receivables, real estate, equipment finance and media, according to the statement. Asset-based lending has been an active area of the $1 trillion private credit market, where investors are attracted to both the strength of the underlying collateral and relatively high yields.
Principal Strategies II already has deployed capital across eight investments, largely senior-secured loans and typically with a maturity of two to five years, according to Crayhill Capital. The average targeted investment size is $50 million to $75 million, the firm said.
“We will continue to focus on building portfolios of differentiated exposures for our investors, strengthening our proprietary sourcing, and employing our thematic investment approach,” said Carlos Mendez, co-founder of Crayhill Capital.
The New York-based firm was started in 2015. Its discretionary assets under management are about $1.6 billion.
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