Crescent Capital Group is seeking to raise around $3bn for a new credit continuation vehicle that would roll assets out of its 2017-vintage Crescent Mezzanine Partners VII fund, according to a report by Bloomberg citing unnamed people familiar with the matter.
The final size and portfolio composition of the fund will depend on negotiations with buyers.
Continuation funds have become a key tool for private credit managers looking to extend ownership of loan portfolios at a time when muted deal activity has slowed traditional exits. The strategy also provides liquidity options for existing LPs while giving new investors access to seasoned assets.
The market has expanded rapidly with secondary private credit transactions hitting a record $102bna in the first half of 2025, carding to a data from Evercore. Recent deals include a $3bn continuation vehicle from TPG Twin Brook Capital Partners and Coller Capital – the largest on record for the asset class – as well as Antares Capital’s $1.2bn fund backed by Ares Management, and a late-stage BlackRock portfolio sale to investors led by Pantheon Ventures.
Los Angeles-based Crescent, which specialises in mezzanine and direct lending strategies, declined to comment on the fundraising.
