Eaton launches formal fundraising platform for credit funds

 The new team will raise capital for funds that target asset-backed and direct corporate lending, distressed debt, real estate credit, and other specialty debt.

Eaton Partners has formed a specific team that will raise capital for private credit managers in the US, Europe and Asia, the firm announced on Wednesday.

The placement agent and advisory firm’s fundraising team will work for funds that target asset-backed and direct corporate lending, distressed debt, real estate credit, and other specialty debt, according to the announcement.

The firm declined to comment further on fundraising.

Jeff Davis, partner at Eaton, said in a statement that his company has seen more opportunities than ever for private credit firms in today’s market, due to the “regulatory hurdles” that “have led to a secular retrenchment from banks in the commercial lending area”.

“In fact, in several industry surveys taken this year, a majority of institutional investors said they were under-allocated to private credit and expected to increase their target allocations over the next 12 months,” he added.

Prior to formalising the team, the placement agent was actively raising capital for private credit groups. This year, Eaton has participated in or raised more than $2.6 billion for five credit funds, and the firm has participated in or raised more than $16 billion for credit-focused funds globally since 1998, according to the announcement.

Eaton works with more than 4,000 institutional investors globally and specialises in raising capital through private equity, private credit, real assets, hedge funds, and real estate.  The firm is a wholly-owned subsidiary of the Missouri-based financial services company Stifel Financial.