ADVISORY BUSINESS
Crescent Capital Corporation, a predecessor to the business of Crescent, was formed in 1991 as an
asset management firm specializing in below-investment grade debt investments. In 1995, the principals
and portfolio managers of Crescent Capital Corporation (including Mark L. Attanasio and Jean-Marc
Chapus) joined and became the leveraged finance group of The TCW Group, Inc. (“TCW”).
Crescent, a Delaware limited partnership, was organized in May 2010 as an independent,
employee-owned asset management firm. Crescent was formed to transition the management of TCW’s
leveraged finance group and the asset management business of the group from TCW to Crescent. As a result
of the transition, the team at Crescent, through sub-advisory, co-advisory and other arrangements with TCW
Asset Management Company (“TAMCO”), and TCW Investment Management Company (“TIMCO”),
continues to manage assets that they managed when they were a part of TCW’s leveraged finance group.
TAMCO and TIMCO are wholly owned subsidiaries of TCW. For information regarding the direct owners,
indirect owners, and executive officers of TAMCO and TIMCO, please see their respective Form ADV,
Part 1A.
Pursuant to a transaction that closed on January 5, 2021, Sun Life (U.S.) HoldCo 2020, Inc. (“SL
HoldCo”) purchased 51% ownership interest in Crescent and 51% ownership interest in Crescent Capital
Group GP LLC, a newly formed Delaware limited liability company that is Crescent’s general partner.
Crescent is now indirectly owned by Sun Life Financial Inc. (NYSE: SLF), a publicly traded holding
company (“Sun Life Financial”) for a diversified financial services organization providing a broad range
of financial products and services to individuals and groups located primarily in Canada, the United States,
the United Kingdom and the Asia Pacific Region. As part of the transaction, Sun Life Financial has or will
invest $750 million in Crescent products or funds.
The majority of the remaining 49% interest in Crescent is owned individually by Mr. Chapus and
Mr. Attanasio, and the remainder is owned by certain senior Crescent employees, none of whom
individually owns greater than 5%. The transaction provides for a put/call of the remaining 49% to/from
Sun Life Financial in approximately 5 years from the closing. During the interim, Crescent will continue to
operate independently under its current management team, including the leadership of Mr. Chapus and Mr.
Attanasio and will retain its individual brand, office locations and clients.
Crescent offers investment advisory services primarily to institutional investors through private
investment funds, including structured vehicles (each, a “Fund” and collectively, the “Funds”) and
separately managed accounts (the Funds and separately managed accounts are collectively referred to
herein as “Clients”). The Funds include closed-end and open-end limited partnerships, collateralized loan
obligations (“CLOs”), and other investment vehicles. Our investment advice to our Clients focuses on
investment and credit management activities in one or more below-investment grade corporate debt
strategies through the following Product Groups:
Capital Markets: The Capital
Markets Product Group includes our Bank Loan, High Income,
High Yield Bond, and Structured Products strategies (Structured Product Strategies include the
management of CLOs and investment in CLO debt and equity tranches). Each strategy invests in,
with varying focus, bank loans, CLOs and high-yield bonds (including 144A offerings) of
primarily U.S. companies.
Direct Lending: Accounts managed in this strategy invest in senior secured debt of private U.S.
lower middle-market companies, including first lien, second lien and unitranche investments.
European Specialty Lending: Accounts managed in this strategy focus on privately secured loans
for primarily European (with a bias towards northern and western jurisdictions) middle market
companies, including senior secured, unitranche, second lien and selected subordinated debt.
Credit Solutions (f/k/a/ Mezzanine): Accounts managed in this strategy primarily focus on junior
debt and unitranche securities. These debt investments typically have an equity component.
Special Situations: Accounts managed in this strategy primarily invest in distressed debt of middle
market companies, in which we may take a leadership role in the restructuring process.
“Below-investment grade debt” refers to a financial instrument rated below BBB/Baa by one of the
major rating agencies, or that, if unrated, in Crescent’s view has a comparable level of credit risk.
Crescent manages assets for and markets primarily to “qualified purchasers” (as defined in the
Investment Company Act of 1940 (“Investment Company Act”)) and “accredited investors” (as defined in
Regulation D under the Securities Act of 1933 (“Securities Act”)).
Investment guidelines and constraints for each Fund managed by Crescent are based upon the
investment objectives and limitations of those Funds as stated in their Fund Documents. Crescent does not
tailor its investment management of a Fund to the individualized needs of any Fund investor.
Crescent may reasonably tailor a separately managed account to a Client’s needs. Crescent and
the Client will work to determine appropriate investment objectives, policies and restrictions, including
restrictions on investing in certain securities or types of securities, for each managed account. The terms
negotiated between the Client and Crescent (with respect to this and other terms including Management
Fees (as defined below)) typically will be memorialized in a written investment advisory agreement (each,
an “Investment Management Agreement”).
Certain Clients enter into arrangements with Crescent whereby Crescent provides investment or
portfolio advice to the Client but Crescent does not exercise investment discretion (“Non-discretionary
Clients”). Crescent may or may not execute trades for Non-discretionary Clients at the Client's direction.
Crescent’s fee in such non-discretionary arrangements is generally lower than its fee for providing
investment advisory services where Crescent has full discretion.
As of December 31, 2023, we manage a total $ 42,557,268,773 of Client assets, $42,177,307,590
of which on a discretionary basis and $379,961,184 of which on a non-discretionary basis.