The office is in the Salamanca district of Madrid, putting it near the banking, investment and financial community, the firm said in a statement earlier this week. 

"Castlelake has been an active participant in the Spanish market and broader Iberian Peninsula for more than a decade, and we are pleased to formalise that experience with a local office in the vibrant city of Madrid," Rory O'Neill, chief executive of Castlelake, said. 

Initially, the Madrid office will be staffed by existing team members and Castlelake. Over time the team will grow, the firm said.

The Madrid office is Castlelake's seventh global office and its third in Europe, joining footprints in Dublin, established in 2020, and London, established in 2006. Castlelake's European team includes more than 70 team members.

Founded in 2005, Castlelake manages about $21 billion of assets and has 95 investment professionals working across seven offices in North America, Europe and Asia.