Crestline Closes $3.5B Direct Lending Fund, Targets Middle Market 

Crestline Investors has announced the final close of Crestline Direct Lending Fund IV (CDLIV) with $3.5 billion in commitments, including anticipated leverage. Launched in 2023, CDLIV provides financing to sponsor and non-sponsor-backed middle market companies in North America, with a focus on lower and core segments. The fund has completed 46 transactions across diverse borrower profiles, industries, and sponsors. 

“This marks another significant milestone in our commitment to providing flexible, scalable capital solutions for the companies with which we invest,” said Keith Williams, managing partner and CIO at Crestline. Chris Semple, partner and co-head of U.S. Corporate Credit, added that the fund’s success reflects growing demand for alpha-driven direct lending strategies targeting the middle market, rather than just the upper end. 

Investors in CDLIV include the New York State Teachers Retirement System ($200 million in early 2024) and Los Angeles Fire and Police Pensions ($40 million). Crestline’s direct lending strategy, active since 2014, targets investments of $10 million to $200 million, encompassing first lien debt, second lien debt, and non-control equity co-investments, with 150 investments completed to date. 

Based in Fort Worth, TX, Crestline further strengthened its direct lending platform earlier this year with the $1 billion closing of its inaugural direct lending collateralized loan obligation (CLO), backed by a portfolio of senior secured loans.