John Bakie
Investors are looking to access new geographies, fund structures and sectors through their private credit allocation in the second half of the decade.
The move will expand access to its evergreen credit vehicle to investors in Europe, Asia-Pacific and Latin America.
The deal is the second between the two firms to provide liquidity to Eurazeo’s LPs while maintaining continuity for borrowers.
Firms are bifurcating between serving large private equity-backed deals or looking at more niche specialist concerns to stand out in a competitive market.
Investors looking to take more risk in private credit could consider the highly specialised sports and media sector, which is undergoing a major transformation.
The significant risk transfer market has been growing in popularity as banks seek to free up more capital for lending.
The move completes the integration of Alcentra and Benefit Street Partners, both of which are part of Franklin Templeton’s alternative credit platform.
The deal will significantly expand CVC’s presence in North America and follows the signing of a $3.5bn partnership with AIG.
The deal will see the American insurer commit significant capital to private and liquid credit strategies.
CalPERS and the European Investment Bank were among the leading investors in credit funds last year.