Cathay Life Insurance, the insurance subsidiary of Taiwanese conglomerate Cathay Financial Holdings, has reduced its commitment to Crescent Capital’s latest direct lending fund to $30 million from the previous $50 million it announced in April.
In a filing with the Taiwan Stock Exchange, Cathay Financial said the reduced commitment in Crescent Capital Direct Lending III will give its insurance unit an estimated 1.5% stake in the fund.
Crescent Capital Direct Lending III focuses on direct lending opportunities to private equity-backed lower middle market and mid-market companies in the US.
Crescent Capital closed the fund’s significantly oversubscribed predecessor, Crescent Direct Lending Fund II, at approximately $1.6 billion in November 2018. The initial target for the fund was $600 million.
The second direct lending fund attracted a diverse mix of US and foreign institutional investors including pension funds, insurance companies, financial institutions, foundations, and endowments, the firm said in a statement.
Since its inception in 2005, Crescent Direct Lending has issued approximately $6 billion of aggregate loan commitments to more than 170 companies.
In 2019, the firm issued approximately $2.1 billion of senior loan commitments to its private equity clients across 24 new portfolio companies and 115 add-on transactions to support the growth of its existing portfolio companies.
Crescent Capital has approximately $28 billion in assets under management. The firm focused on below investment grade credit through strategies that invest in debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche, and junior debt securities.
Established in 1962 with subsidiaries in Mainland China and Vietnam, Cathay Life Insurance has previously pledged commitments to funds such as TPG’s growth-equity and mid-market buyout vehicle TPG Growth V, the fourth Asia-focused buyout fund of PE giant KKR & Co, the sixth flagship buyout fund of PE firm Silver Lake Partners, and CVC Capital Partners’s CVC Capital Partners VIII.
Earlier this month, Cathay Life approved commitments of $25 million to Singapore-headquartered investment holding company Vertex Holding’s Vertex Growth II and $80 million to French private equity firm Ardian’s ASF VII Infrastructure funds.