Coller Capital, the world’s private market secondaries manager, has acquired a $1.6bn senior direct lending portfolio from American National, a multiline US insurer.
The investment reportedly marks the largest ever “LP-led credit secondaries transaction that is focused on a senior direct lending portfolio.”
The transaction will see Coller Capital acquire LP positions “in 44 US credit funds that are primarily focused on senior direct lending.”
The portfolio focuses on first lien and unitranche loans to mid-market companies and, at acquisition, was diversified “across over 3,000 loans and nearly 1,500 borrowers, the majority US based.”
Coller Capital was approved to buy all funds by the “underlying GPs, reflecting the firm’s widely recognized scale, expertise and experience when it comes to structuring and executing LP-led secondaries credit transactions.”
Michael Schad, Partner, Head of Coller Credit Secondaries, said:
“This investment marks the largest of its kind to date. It is a classic Coller Capital transaction in that it required scale, innovation and specialist expertise to solve a complex challenge. Ultimately, it underlines our pioneering position in the credit secondary space. While interest in private credit secondaries continues to grow, the market remains undercapitalized relative to deal volumes. We believe that as more capital becomes available to address this imbalance we will see an increase in transactions of this size.”
Martins Marnauza, Partner at Coller Capital said:
“This is a landmark transaction demonstrating the benefits of our global scale and capabilities in the secondary market, as well as the benefits of a seasoned team. The investment highlights our ability to effectively structure and swiftly execute on transactions and helps us continue to provide our investors with exposure to a diversified portfolio of high-quality assets.”
Jefferies LLC acted as adviser to American National, with Debevoise and Plimpton LLP serving as legal counsel.
Akin Gump Strauss Hauer & Feld LLP and Simpson Thacher & Bartlett LLP served as legal counsel for Coller Capital.
In 2024, Coller Capital announced the closing of a “GP-led transaction to create a continuation vehicle for Abry Advanced Securities Fund III .”
The GP-led transaction represented the largest “credit continuation vehicle ever created with $1.6 billion of assets. “
