Barclays (LON:BARC) Plc is wrapping up the final details of a partnership with AGL Credit Management to tap into the rapidly expanding $1.5 trillion private credit market, according to Bloomberg which cited informed sources who wished to remain anonymous due to the confidential nature of the matter. This partnership is expected to leverage Barclays' loan origination capabilities and AGL's credit investing expertise, enabling both firms to compete more directly with private credit funds.
AGL Credit Management, a firm founded by veteran banker Peter Gleysteen and the late Thomas H. Lee, has traditionally focused on bank loans and collateralized loan obligations. It recently recruited Taylor Boswell, a former Carlyle Group (NASDAQ:CG) Inc. executive, as part of its expansion into direct lending. The company was established in 2019 with significant financial backing from an Abu Dhabi Investment Authority (ADIA) subsidiary.
The joint venture's first fund is anticipated to launch with at least $1 billion of equity commitments. The Abu Dhabi Investment Authority is currently in discussions to anchor this fund. The structure of the fund is expected to be similar to a business development company, an investment model originally aimed at retail investors in the US that has gained popularity among large institutional buyers.
In line with its peers, Barclays has been exploring avenues to establish a presence in the private credit sector. In support of this endeavor, the bank has recently allocated funds from its balance sheet.
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