Gramercy Funds Management, chaired by former Pimco chief executive Mohamed A. El-Erian has closed its latest credit fund with $760m (£602m) in capital.

Gramercy Capital Solutions Fund III’s fundraise includes $685m of limited partner commitments and $75m in co-investments. The firm, which focuses on global emerging markets, launched the strategy in 2017, raising $312m at the time for the first vintage. The third vintage is 28 per cent larger than the previous one closed in June 2022.

The capital solutions strategy is run by a 12-strong team led by Gustavo Ferraro, who is senior portfolio manager.

The Connecticut-headquartered firm, which has $6bn in assets, has offices in Argentina, Mexico and Miami.

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The fund invests in US dollar loans primarily in Latin America and some in Central and Eastern Europe, as well as the Middle East and Africa.

“We have an ability to access a multitude of borrowers and negotiate attractive terms for the fund because they see our capital as transformational for their businesses and growth aspirations,” Ferraro commented.

To date, the firm has deployed approximately $5bn in capital across 100 investments.

“We leverage the depth of experience and knowledge represented in our investment team to focus on the best opportunities in private credit and direct lending corporate markets,” added Robert Koenigsberger, managing partner and chief investment officer of Gramercy.

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