Global alternative investment manager Castlelake has completed the final closing of its CIO II Fund with around $782 mln (€798 mln) in capital commitments.
The fund is a successor to Castlelake’s 2018 vintage fund, which raised $456 mln (€465 mln) and closed in 2020.
CIO II has already invested $333 mln (€340 mln) in real estate assets, specialty finance and aviation.
CIO II will seek to generate attractive risk-adjusted returns with less correlation to and less volatility than the public markets by investing in areas where Castlelake considers it has deep expertise and competitive advantages.
These areas include stabilised commercial real estate in Europe and transitional bridge loans in North America, specialty finance solutions for SMEs and consumer finance providers, and secured aviation related lending.
Rory O’Neill, managing partner and CEO of Castlelake, said: ‘We are grateful for the support the Fund received from both new and existing Castlelake investors around the world and believe the significant interweave is a testament to Castlelake’s success in supporting sophisticated global institutions in achieving their investment goals. We believe that our extensive experience investing across economic cycles demonstrates our ability to be a capable steward of our limited partners’ capital across market environments and we are honored to have the opportunity to continue building on that legacy with this Fund.’
Evan Carruthers, managing partner and CIO of Castlelake, added: ‘As traditional capital providers appear to continue to retreat from many markets where we have long focused and users of capital have an increased need for bespoke solutions to navigate volatile conditions, we see an especially compelling long-term opportunity for Castlelake to deploy capital on behalf of our investors. We look forward to leveraging our analytical, sourcing and operating capabilities, as well as our deep relationships across our global network, to the benefit of our clients and stakeholders.’
Since its inception in 2005, Castlelake has invested approximately $14 bn (€14.3 bn) in real estate assets.
