Credit Suisse and the Qatar Investment Authority (QIA) announced a partnership with Credit Suisse Asset Management to create a multi-billion dollar direct private credit platform that will provide financing via secured first and second lien loans to upper middle-market and larger companies in the U.S. and Europe.
“We see significant potential in the growing private credit market and we are excited to once again work with Credit Suisse,” said Mansoor Al Mahmoud, CEO of QIA. “This strategic partnership, with one of the foremost leaders in asset management, is aligned with QIA’s objectives as a long-term diversified investor across asset classes both in the U.S. and globally.”
QIA is the sovereign wealth fund of the State of Qatar and was founded in 2005 to invest and manage the state reserve funds. QIA is among the largest and most active sovereign wealth funds globally, investing across a wide range of asset classes and regions as well as in partnership with leading institutions around the world to build a global and diversified investment portfolio with a long-term perspective that can deliver sustainable returns and contribute to the prosperity of the State of Qatar.
The platform is part of Credit Suisse Asset Management’s Credit Investments Group, which has $60 billion in non-investment grade credit positions and is led by Global Head and Chief Investment Officer John Popp.
According to Popp, the private credit platform is a natural extension of the firm’s business as a leading provider of capital solutions to non-investment grade companies in the US and Western Europe. He said that the current market environment presents an ideal entry point into the private credit space, with capital and liquidity now at a premium.
The Credit Investments Group has a track record of more than 20 years through various market cycles.
“We believe this strategic partnership with QIA presents unique opportunities for borrowers seeking credit solutions to partner with our Asset Management and Investment Bank franchises,” said Eric Varvel, global head of asset management and chairman of the Investment Bank at Credit Suisse. “The Credit Investments Group, within Credit Suisse Asset Management, has extensive industry and lending relationships that, when combined with Credit Suisse’s unmatched leverage finance and financial sponsors franchises, uniquely positions us to provide capital and liquidity to the private credit market.”
