Crestline Investors closed two alternative investment funds of funds with a total of $1.7 billion of commitments.
The Crestline Opportunity Fund II was closed with commitments of $980 million, said Anastasia Pronin, a company spokeswoman.
The new fund of fund's flexible opportunistic approach will focus on “market dislocations and inefficiencies,” according to a company news release, and will invest in alternative investment managers' private credit strategies, including direct lending, distressed credit, and performing and non-performing loans. The fund's portfolio managers also will seek managers of niche strategies, such as royalty streams and structured finance, as well as investment in hedge fund secondary interests.
Investors in Crestline Opportunity Fund II include the $7.8 billion Arizona Public Safety Personnel Retirement System, Phoenix, which committed up to $50 million, and the $2.3 billion San Joaquin County Employees' Retirement Association, Stockton, Calif., which committed up to $45 million.
The Crestline Recovery Fund III brought in $738 million of commitments for its focused investment in hedge fund secondary interests, the spokeswoman said.
The two new funds are the fifth and sixth in Crestline's series of opportunistic funds started in 2005 and have attracted a total of $2.7 billion in commitments.
In total, Crestline manages $7.6 billion, mostly for institutional investors.