Castlelake has completed the first and final closing of its fifth general purpose fund, Castlelake V at its hard cap of USD2.4 billion in capital commitments after four months of marketing.
The fund’s investor base consists of both existing and new Castlelake limited partners based in the US, Canada, Europe, Middle East and Asia.
“The formation of Castlelake V is a testament to the credibility of our investment strategy and the Castlelake team’s track record of identifying an opportunity set that spans sectors and cycles,” says Rory O’Neill, managing partner and CEO of Castlelake. “We are grateful to our investors for their support of the fund and look forward to deploying capital on their behalf.”
Castlelake V intends to achieve risk-adjusted returns by primarily making investments in asset-rich and/or cash-flowing opportunities. The fund will leverage the investment team’s track record in opportunistic investing and Castlelake’s ability to shift emphasis among markets and asset types, in effort to capitalize on opportunities that are less dependent on the prevailing business cycle. This includes Castlelake’s niche expertise across global aircraft assets and aviation finance, European distressed real estate assets and non-performing loans, US distressed assets and non-performing loan portfolios, dislocated industries and corporate distressed special situations, and distressed opportunities in the emerging markets.
The fund’s investment strategy and portfolio approach are similar to that of Castlelake’s preceding general purpose funds, the most recent being Castlelake IV, which closed in June 2015 with USD1.9 billion in capital commitments. In addition to its general purpose funds, Castlelake has raised several industry-specific funds to capitalise on unique opportunities within US land and the aviation sector.
