Different asset supervisor Stonepeak has agreed to amass personal credit score specialist Boundary Avenue Capital.
The deal, for an undisclosed quantity, will permit Stonepeak, which focuses on infrastructure and actual belongings, to develop its credit score, digital infrastructure and expertise funding capabilities.
Boundary Avenue, which has greater than $700m (£547m) in capital commitments, supplies versatile capital to decrease mid-market expertise and telecommunications companies.
The deal is predicted to shut within the fourth quarter of the 12 months. With the addition of the brand new enterprise, Stonepeak will look to supply a extra complete set of credit score and credit-linked capital options to companies, it mentioned in a press release.
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Jack Howell, co-president of Stonepeak, commented: “We proceed to see compelling funding alternatives throughout the credit score house, particularly because it pertains to digital infrastructure, which has lengthy been one in all Stonepeak’s most energetic sectors. Over the past a number of years, we’ve made considerate investments to additional construct out our credit score platform, together with the addition of Michael Leitner as a senior managing director in 2023.
“As we now have constructed out the broader credit score group and efficiently deployed capital throughout the capital stack into world-class infrastructure portfolio firms, the group has continued to excel. The acquisition of Boundary Avenue is a pure subsequent step within the development of the agency and the evolution of Stonepeak Credit score.”
Stonepeak has roughly $70bn of belongings beneath administration, with 9 workplaces throughout the US, Europe, Asia and the Center East.
Leitner added: “By combining Stonepeak’s experience and assets with the Boundary Avenue group’s complementary expertise and skillsets, we could have the flexibility to broaden our funding aperture and execute extra effectively on the alternatives we’re seeing in AI-driven companies, together with cloud companies, enterprise and infrastructure software program, and digital companies, whereas bringing a extra complete breadth of choices to our constituent debtors and restricted companions.”
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As personal credit score has develop into a extra common asset class with buyers, asset managers have sought to develop their capabilities on this phase, with many choosing acquisitions. Beforehand, firms like BlackRock, Arrow International and Sienna IM have expanded their personal credit score companies by means of M&A.