UBS Group and General Atlantic announced a strategic partnership focused on private credit opportunities, marking the latest move in the bustling $1.7 trillion alternatives segment.
The partnership is focused on giving clients and borrowers access to a broader set of direct lending and other credit products, according to a news release.
“We are excited to bring together General Atlantic’s deep expertise in private credit investing with UBS’s strengths in origination, global client relationships, and advisory services,” said Bill Ford, chairman and CEO of General Atlantic in the release. “Our complementary cultures position us well to scale a market-leading private credit platform, and we look forward to capturing the most compelling opportunities for our investing clients.”
The partnership brings together UBS’s advisory and investment banking origination abilities with General Atlantic’s global network and sourcing and will focus on senior secured direct lending financing to companies in North America and Western Europe, according to the release.
GA Credit will lead investment activities and manage a private credit team that will include individuals from GA Credit and UBS Asset Management’s Credit Investments Group. The partnership will also allow UBS Asset Management’s Credit Investments Group to source incremental private credit assets for its multicredit strategies.
“We’re pleased to enter this strategic partnership with General Atlantic, leveraging our two firms’ individual strengths to jointly deliver a broader range of innovative private credit solutions,” said Sergio P. Ermotti, group CEO of UBS, in the release.
For UBS, the partnership will give it the ability, especially in the Americans, to provide private credit solutions across mid- and large-cap structures, including both corporate and sponsor-backed assets, according to the release.
General Atlantic established its credit division in 2023 following its acquisition of Iron Park Capital. The credit division is led by Tripp Smith, who co-founded GSO Capital Partners, Blackstone’s private credit arm. The partnership will allow GA Credit’s Atlantic Park strategy to create customized capital solutions tailored to company needs.
The GA credit division has $4.8 billion in assets under management. General Atlantic had approximately $108 billion in assets under management as of March 31.
UBS managed $6.2 trillion of invested assets as March 31.
Banks have been active in developing partnerships with private credit players as well as putting aside assets for private credit efforts. In a recent example, DWS Group and Deutsche Bank announced they are teaming up on private credit.
Private credit has also seen a steady stream of strategic partnerships, stake deals and mergers and acquisitions activity over the last 18 months.
Among the largest mergers, BlackRock acquired HPS Investment Partners in a $12 billion deal. Blue Owl Capital acquired credit manager Atalaya Capital Management. French investment firm Wendel Group agreed to take a $1 billion stake in private credit firm Monroe Capital. Janus Henderson Group agreed to acquire a majority stake in private credit manager Victory Park Capital Advisors.
