Pemberton launches credit risk sharing strategy

Pemberton has hired former Citigroup executive Olivier Renault to lead the firm’s new risk sharing strategy in the firm’s London office.

The new fund will be focused on asset classes where Pemberton has credit expertise, mainly within corporate and SME loans as well as trade finance. Officials said that in addition to a dedicated fund that will be offered in an unlevered and levered format, the risk sharing strategy will have co-investment arrangements with key LPs.

Renault has already begun the build-out of his investment team and brings more than 20 years of experience in structured credit, securitization, and bank capital finance.

Pemberton’s new strategy will invest in junior tranches of loan portfolios originated and serviced by banks. According to the firm, banks execute these strategies in order to free up lending capacity and regulatory capital.

The asset class has grown in the past few years and Pemberton estimates that around 50-60 transactions per year are handled by banks, each referencing potentially hundreds of even thousands of loans.

“Pemberton’s deep credit expertise makes it the perfect player to partner with banks in this growing area of alternative credit,” Renault added. “With 80% of transactions taking place in Europe, Pemberton’s local office network means it will stand out in the market with unrivalled sourcing capabilities, which will enable us to select the most attractive investment opportunities.”

He said he will provide more details about the strategy over the coming months. Renault spent over 10 years at Citigroup, most recently as global co-head of Financial Institutions Group (FIG) Solutions. He also started the Structuring & Advisory practice at StormHarbour, which grew to become one of the leading non-bank structuring platforms in Europe. In addition, Renault has two years under his belt as a lecturer in derivatives and risk at the London School of Economics.

“New investment strategies will play an important role in driving our growth, creating the next generation of alternative credit products and providing further opportunities for our investors in 2022,” said Mark Hickey, partner at Pemberton. “Olivier’s considerable experience makes him the right person to lead this new strategy and build a top-tier offering in what is an increasingly relevant area of the market.”

Pemberton’s credit team has been experiencing a growth spirt with Matthew Kirsch joining as managing director focused on European leveraged finance from Apollo. Kirsch last month started work within the 10-strong credit team led by Nicole Gates, the firm’s chief credit officer.

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