Pemberton launches risk sharing strategy

London-based credit investor Pemberton is to launch a new risk-sharing strategy and has hired ex-Citigroup executive Olivier Renault to lead the initiative.

The strategy will invest in junior tranches of loan portfolios originated and serviced by banks. Pemberton said banks conduct these transactions in order to free up lending capacity and to meet regulatory capital requirements.

According to Pemberton, between 50 and 60 transactions are executed each year, with each referencing hundreds or thousands of loans. It hopes to use its local presence in eight European countries to give it an edge in sourcing.

A new fund will be launched as part of the strategy and will be offered in both levered and unlevered formats, and the fund will also co-invest alongside LPs. It will invest in areas where Pemberton already has credit expertise, such as corporate lending, SME lending and trade finance.

Renault joins as portfolio manager and head of risk-sharing strategy. He has more than 20 years of experience in structured credit, securitisation and bank capital finance.

He spent 10 years at Citigroup, most recently as global co-head of financial institutions group solutions. Renault also founded the structuring and advisory practice at Stormharbour. Renault will build a new, London-based team at Pemberton and has already begun hiring.

Commenting on the launch, Pemberton partner Mark Hickey said: “New investment strategies will play an important role in driving our growth, creating the next generation of alternative credit products and providing further opportunities for our investors in 2022.

“Olivier’s considerable experience makes him the right person to lead this new strategy and build a top-tier offering in what is an increasingly relevant area of the market.”