Jefferies Credit Partners is targeting around €1bn ($1.16bn) for a new vehicle designed to give investors exposure to private credit secondaries while providing the lender with additional capital to originate loans, according to Private Equity Wire.
Fund Objectives
The fund will acquire loans from Jefferies Credit Partners’ existing portfolio and allocate capital towards new lending. The vehicle is expected to operate on an evergreen basis, allowing it to recycle capital indefinitely while holding loans previously originated by Jefferies Credit Partners.
Transaction Structure
The vehicle is expected to be structured as a continuation fund, or “staple” transaction, with approximately €500m of equity alongside a similar amount of leverage. Jefferies is advising on the transaction.
Market Context
The proposed structure reflects the growing use of secondary transactions by private credit managers seeking to generate liquidity from existing portfolios while creating capacity for further investment, according to Private Equity Wire. This vehicle follows the pattern of other private credit secondaries vehicles that combine portfolio acquisitions with fresh lending capacity, according to Private Equity Wire.
