Chicago Atlantic Expands Private Credit Focus to Emerging Markets
Chicago Atlantic, a firm founded in 2018, is launching a new strategy to target private credit opportunities in emerging markets, focusing on lending to high-quality borrowers such as government-linked entities and companies deemed strategically important, according to Private Equity Wire. This initiative aims to capitalize on growing demand as some investors reduce exposure to similar US-based funds. The strategy will emphasize offerings like senior secured loans, structured credit, and asset-backed financing solutions.
Details of the New Strategy
The new approach centers on private credit in developing nations, where Peter Marber, one of the strategy’s leaders, highlighted a structural opportunity in these fast-growing markets. Marber and Jim Garvey, who bring extensive emerging-market experience, will lead the effort, with Marber having previously held roles at UBS, HSBC, and Loomis Sayles, and Garvey at Emso Asset Management and Bank of America Merrill Lynch. Proponents of emerging-market private credit argue it provides a more disciplined and lower-risk alternative, as investors pull back from US-focused funds due to concerns over loan quality and overexposure to sectors such as software.
Key Personnel Involved
Scott Gordon, a former professional at JPMorgan and Marathon Asset Management, will oversee the business and collaborate with Marber and Garvey. This team combination draws on their collective experience in emerging markets to address the new strategy’s goals. As widely known in the private credit sector, such expertise is crucial for navigating international lending complexities, though this expansion specifically responds to current investor shifts away from US markets.
Chicago Atlantic’s Background
Founded in 2018, Chicago Atlantic has deployed more than $3.3 billion in private loans for around 1,000 investors, with a focus on niche areas such as cannabis and lower-to-middle market lending. This expansion into emerging markets builds on the firm’s established track record in private credit. According to Private Equity Wire, the move reflects broader trends where investors seek diversified opportunities beyond saturated US markets.
