Coller Capital has acquired a $1.6bn (£1.2bn) senior direct lending portfolio from US-based insurer American National.
The investment marks the largest ever LP-led credit secondaries transaction that is focused on a senior direct lending portfolio.
The deal will see Coller Capital acquire LP positions in 44 US credit funds that are primarily focused on senior direct lending. The portfolio focuses on first lien and unitranche loans to mid-market companies diversified across more than 3,000 loans and nearly 1,500 borrowers.
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“This investment marks the largest of its kind to date,” said Michael Schad, partner, head of Coller Credit secondaries.
“It is a classic Coller Capital transaction in that it required scale, innovation and specialist expertise to solve a complex challenge. Ultimately, it underlines our pioneering position in the credit secondary space.
“While interest in private credit secondaries continues to grow, the market remains undercapitalized relative to deal volumes. We believe that as more capital becomes available to address this imbalance we will see an increase in transactions of this size.”
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“This is a landmark transaction demonstrating the benefits of our global scale and capabilities in the secondary market, as well as the benefits of a seasoned team,” said Martins Marnauza, partner at Coller Capital.
“The investment highlights our ability to effectively structure and swiftly execute on transactions and helps us continue to provide our investors with exposure to a diversified portfolio of high-quality assets.”
Jefferies acted as adviser to American National, with Debevoise and Plimpton serving as legal counsel. Akin Gump Strauss Hauer & Feld and Simpson Thacher & Bartlett served as legal counsel for Coller Capital.
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