Jefferies Credit Partners is looking to raise €1 billion ($1.16 billion) for a new fund focused on private credit investments in the secondary market.
Structured as a continuation vehicle, or staple deal, the fund would purchase loans previously originated by Jefferies Credit Partners while also putting capital toward new lending opportunities, Bloomberg reported, citing sources familiar with the deal.
The fund is expected to have about €500 million ($584 million) tied to investor equity and another €500 million tied to leverage. Jefferies advised on the transaction, and the fund will allow capital to be reinvested on an ongoing basis, Bloomberg added.
Private Credit Secondaries Gain Momentum
The private-credit secondaries market has been expanding quickly, as a growing subset of investors are utilizing the secondary market to address a broad range of liquidity and portfolio management needs, according to a report from Ares Management.
In 2024, the credit secondaries transaction volume totaled $15 billion. That’s a fivefold increase from 2019. Ares credits greater awareness and education about the asset class, paired with increased dedicated capital formation, for driving more sellers to transact.
"Recently, we are seeing sellers utilizing the credit secondaries market to access liquidity in order to prudently manage downside risk against an uncertain market backdrop," said Dave Schwartz, partner and head of Credit Secondaries at Ares.
"Looking ahead, we anticipate the market to continue to grow meaningfully, with advisors projecting transacted volumes of $28 billion by 2026 and in excess of $50 billion by 2030."
Secondaries Dealmaking Activity
Pantheon, a secondaries specialist, recently backed a new vehicle that absorbed an existing loan portfolio from Goldman Sachs, while Ares Management (NYSE:ARES) is moving to sell €3 billion ($3.4 billion) of bundled interests in a flagship European direct-lending fund, potentially making it one of the largest private credit sales on record.
In June, GIC Pte tapped investment banking firm Evercore Inc. to advise on a potential divestment of private credit fund assets. Singapore’s sovereign wealth fund has been allocating to private credit for years and is now considering selling a portion of those positions as they mature.
Other recent GP-led secondaries deals include Pantheon Ventures, which led a $3.2 billion private credit continuation vehicle for Crescent Capital.
Last year, Benefit Street Partners closed its $2.3 billion private credit continuation vehicle, led by Coller Capital.
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