Veritable and Moelis Asset Management have created joint venture platform Archean Capital Partners to invest in newly launched private funds, the companies said on Thursday.
The two investment firms have already set up an initial Archean special purpose vehicle.
That fund has received commitments from Veritable clients and individuals at both firms totaling $100 million – a figure which a source familiar with the matter told Private Debt Investor was the fund’s target.
The firm is already investing the SPV capital commitments as seed financing for an undisclosed private fund.
Archean will provide investors with returns on its seed investment in the newly launched funds and on revenue sharing in the new fund manager’s business, according to the statement.
Christopher Ryan, managing director at Moelis, said in the statement that the Archean platform will allow portfolio managers both the “large and stable source of initial capital for a rapid first close”. Archean will also help secure additional fundraising commitments for new credit funds.
“In partnership with Veritable, we believe there will be tremendous opportunities to grow this unique investment platform for the benefit of new managers and investors alike,” Ryan said.
Both firms declined to comment further.
Through Archean, Veritable and Moelis will partner with portfolio management firms on buyout, turnaround and restructuring, growth, credit opportunities, infrastructure and real estate strategies.
Veritable is a capital management firm with over $13 billion of assets and is headquartered in Newtown Square, Pennsylvania.
Moelis is a parent company for alternative asset management firms in private equity, direct lending, credit funds and structured products, according to its website. The firm has more than $3 billion in assets and is an affiliate of Moelis & Company, a global investment bank.
In 2012, Moelis & Co. launched its own mid-market lender Freeport Financial Partners, which closed its latest senior debt fund with $960 million in commitments last October, as PDI previously reported.