Taiwan’s Cathay Life reduces commitment to Crescent Capital’s direct lending fund

Taipei, Taiwan. Source: Louis Cheng/Unsplash

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. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.