AllianceBernstein has established a new platform that will focus on direct lending to middle market companies. The new platform is called AllianceBernstein Private Credit Investors and is led by the former senior leadership team of Barclays Private Credit Partners, which was sold in December 2013.
AllianceBernstein Private Credit Investors (AB Private Credit) will target primary-issue middle market credit opportunities that are directly sourced and privately negotiated. AB Private Credit will emphasize secured lending by focusing on first lien, unitranche and second lien loans, while selectively considering mezzanine, structured preferred stock and non-control equity co-investment opportunities. Investments will be made in companies with EBITDA’s of less than $50 million.
Brent Humphries, previously President of Barclays Private Credit Partners, will lead AB Private Credit along with four former Barclays’ colleagues – Jay Ramakrishnan, Patrick Fear, Shishir Agrawal and Wesley Raper. While at Barclays Private Credit Partners, Mr. Humphries and his team were responsible for building a private credit business that oversaw approximately $1.5 billion of commitments across 48 transactions.
“Direct lending to middle market companies is an attractive space due to its enduring fundamentals and strong secular growth trends. By joining AllianceBernstein and tapping into its leading fixed income franchise and strong distribution capabilities, my colleagues and I can continue to execute our disciplined investment philosophy and relationship approach to lending,” said Mr. Humphries.
In the past few years, AllianceBernstein has expanded its alternatives platform and currently manages $16 billion of assets. “We are committed to continuing to grow our alternatives platform and direct lending is a natural extension of our existing liquid credit and private placement capabilities,” said Matthew Bass, COO of Alternatives. “Being on the cusp of rising rates and regulatory changes makes private credit strategies particularly attractive. We think the favorable supply and demand dynamics driven by bank disintermediation, the attractive relative value compared to large cap liquid credit, and the better risk controls available through direct origination, makes this a very appealing asset class.”
“By offering direct lending capabilities, we will be better able to meet our clients’ needs for strong sources of income that also dampen volatility,” continued Mr. Bass. “Brent and his team have deep investment expertise and an established presence in the market that will help us take advantage of the strong long-term return potential.”
AllianceBernstein is a US-based investment management firm majority-owned by France’s AXA. The company is based in New York and has approximately $444 billion in assets under management (www.alliancebernstein.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-28-14
