Eldridge and Carlyle close inaugural diversified credit fund

Eldridge and Carlyle AlpInvest have announced the close of their inaugural Eldridge Diversified Credit Fund I (EDCF I).

As part of the transaction, Carlyle AlpInvest and its co-investors made an equity commitment to Eldridge managed vehicles which, when combined with debt financing from BNP Paribas, is expected to provide up to approximately $1.5bn (£1.1bn) in investable capital.

“Our goal is to meet the evolving needs of institutional borrowers while generating attractive returns through a differentiated, multi-strategy credit platform,” said Nicholas Sandler, co-president and co-head of diversified credit at Eldridge Capital Management. “The fund reflects our disciplined origination and structuring, designed with flexibility to support borrowers up and down the capital structure. We are grateful for the trust placed in us by our investors and look forward to continuing to execute on our strategies.”

EDCF I was established through a credit secondary solution anchored by the purchase of a diversified portfolio of loans and leases from Eldridge and its affiliates. The fund’s capital base includes commitments from leading institutional investors globally.

“We are pleased to partner with Eldridge on its first diversified credit fund and support this next phase of growth,” said Mike Hacker, partner at Carlyle AlpInvest. “Eldridge’s highly compelling diversified credit platform combines its corporate credit capabilities with its leading asset-based equipment origination franchise, creating a broader and more flexible toolkit for navigating the market. We look forward to continuing our partnership across future initiatives.”

Manager and insurance company Eldridge currently has $70bn in assets under management, while Carlyle is a global private equity investor with $102bn in assets.

“EDCF I is built around a diversified, high-quality private credit portfolio that highlights Eldridge’s differentiated origination and underwriting capabilities,” said Justin Karp, managing director at Carlyle AlpInvest. “By structuring a tailored managed fund solution, we were able to support the evolution of Eldridge’s captive platform while preserving its core strategy and differentiation.”