Through the new private credit platform, the Qatari sovereign wealth fund and Credit Suisse Asset Management will offer secured first and second lien loans to US and European firms
Credit Suisse partners with QIA to form a direct private credit platform. (Credit: Roland zh/Wikipedia.org)
Swiss investment bank Credit Suisse has joined forces with the Qatar Investment Authority (QIA) to create a multibillion-dollar direct private credit platform.
In this connection, the Qatari sovereign wealth fund will partner with Credit Suisse Asset Management to offer financing to upper middle-market and larger companies across the US and Europe.
The financing through the direct private credit platform will be mainly in the form of secured first and second lien loans.
Credit Suisse asset management global head and investment bank chairman Eric Varvel said: “We believe this strategic partnership with QIA presents unique opportunities for borrowers seeking credit solutions to partner with our Asset Management and Investment Bank franchises.
“The Credit Investments Group, within Credit Suisse Asset Management, has extensive industry and lending relationships that, when combined with Credit Suisse’s unmatched leveraged finance and financial sponsors franchises, uniquely positions us to provide capital and liquidity to the private credit market.”
The direct private credit platform is part of Credit Suisse Asset Management’s Credit Investments Group (CIG), which is headed by John Popp, who is the global head and chief investment officer.
The CIG team is claimed to be among the largest providers of leveraged finance solutions with nearly $60bn in non-investment grade credit positions.
Popp said that the new credit platform is a natural extension of CIG’s business. He added that the prevailing market environment gives an ideal entry point into the private credit segment, with liquidity and capital currently at a premium.
New private credit platform to further help QIA’s goals of being a diversified investor
Qatar Investment Authority CEO Mansoor Al Mahmoud said: “We see significant potential in the growing private credit market and we are excited to once again work with Credit Suisse.
“This strategic partnership, with one of the foremost leaders in asset management, is aligned with QIA’s objectives as a long-term diversified investor across asset classes both in the US and globally.”
Credit Suisse and Qatar Investment Authority had previously created a joint venture called Aventicum Capital Management, which is a multi-boutique, global asset management business.