Macquarie Asset Management is to extend its global private credit capabilities with an expansion into credit portfolio financing.
Macquarie will seek to provide new sources of capital to investment managers active in the fund finance market that is estimated be worth around $575bn (€539bn) globally.
The asset manager said it will aim to secure “diversified and low risk exposures to middle-market corporates” by providing “the levered sleeves of private credit funds with an alternative financing solution”.
Macquarie has already made its first investment in the sector, investing $100m in a loan to the flagship fund of a major US direct lending manager. The investment provides leverage for a broadly diversified portfolio of middle-market corporate loans, the manager confirmed.
Kit Hamilton, head of infrastructure and investment grade private credit, said: “We are pleased to announce the build out of our fund finance capabilities with our expansion into credit portfolio financing. This reflects our view that the sector can offer a defensive entry point into middle-market direct lending, diversification and the potential for stable cash flows.”
Steve Berry, head of fund capital in the firm’s private credit team, said: “As we move into a new macroeconomic regime, we are seeing material change in the dynamics of the credit portfolio financing market. At a time when borrowers are increasingly seeking larger and more bespoke financing solutions to support their fundraising activities, the lending landscape has changed, and this has impacted the terms that are available to them. This is presenting significant opportunities to alternative lenders and I’m excited that we are stepping in with a solution.”
Macquarie’s private credit platform provides private credit and credit-like solutions across infrastructure, fund capital, real estate, private placements and asset finance.
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