(Bloomberg) -- Private credit firm Crescent Capital Group said it raised a total of $6 billion to lend directly to smaller to midsized companies. 

The money raised includes $3.2 billion in equity commitments on a final close of its third direct lending fund, plus $1 billion in targeted leverage. It’s also receiving $1.8 billion from separately managed accounts that will invest alongside the fund. 

The booming private-lending market has been raising vast amounts of money in recent years from investors looking for higher returns. In 2021, the funds raised a record record $195 billion, according to financial research firm Preqin. 

The equity Crescent raised for the vehicle titled Crescent Direct Lending Fund III exceeded the firm’s initial target by more than $1 billion. The previous version of the fund closed in 2018 and raised $1.6 billion in equity commitments. Investors in the fund include a mix of pension funds, insurance companies, financial institutions, family offices and endowments.

So far, Crescent has invested $1.6 billion from the fund. Its strategy is to invest in loans to companies backed by U.S. private equity firms, debt that can be as big as $150 million to $200 million, according to the statement. 

Crescent’s direct lending business focuses on companies that generate between $5 million to $35 million of a form of income known as earnings before interest, tax depreciation and amortization. Loan proceeds typically fund leveraged buyouts, add-on acquisitions, refinancings and recapitalizations.

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