Generali Investments has announced the launch of its Private Credit Secondaries Fund in collaboration with Partners Group, one of the largest firms in the global private markets industry.
The Fund, which will invest across a broad range of private credit secondaries transactions globally to “generate risk-adjusted returns, is available to professional investors in Europe, the Middle East, and Asia.”
The Fund is structured as a Luxembourg Reserved Alternative Investment Fund by Generali Investments Luxembourg, “with Generali Asset Management serving as the delegated portfolio manager and Partners Group as the investment advisor and joint distributor.”
It will be an Article 8 under the SFDR classification.
The Fund will leverage Generali Asset Management’s competitive advantages in origination and underwriting, “supported by its track record in fund investing, and benefit from Partners Group’s institutional knowledge and investment expertise across private credit markets and secondaries transactions.”
In addition to doubling “origination capacity, the partnership will also mean increased underwriting and execution capabilities, enhanced client reporting support, and expanded fundraising efforts.?”
The collaboration aims to “capture market share in the rapidly growing private credit secondaries space.”
The rise in total private credit assets under management (AuM), which is estimated at “approximately $1.6 trillion1 , is expected to underpin future secondaries transaction volumes.”
Typical secondaries transactions include LP-led secondaries, “where LPs seek to sell stakes in funds, and GP-led secondaries, which involve GPs moving portfolio assets into a new vehicle.”
Marco Zanuso, Global Head of Sales & Marketing, Generali Investments:
“Over the past five years, we have observed consistent growth in the private credit sector, and our capabilities within this segment have advanced significantly. We have strategically positioned ourselves with a diverse array of investment strategies to assist our clients in achieving their direct and indirect private credit investment goals. This focus on alternative asset classes aligns with our broader investment strategy to capitalize on illiquidity premiums and deliver solid risk-adjusted returns to investors. Given the evident imbalance between supply and demand in the secondary market, we are highly enthusiastic about this new fund in collaboration with Partners Group. This partnership presents new opportunities in a rapidly expanding and promising market.”
Marco Busca, Head of Indirect Private Debt, Generali Asset Management (part of Generali Investments):
“Together with Partners Group, we are able to offer a new strategy that addresses diverse investment needs, leveraging the inherent advantages of private credit secondaries. They present similar opportunities with multiple benefits: superior returns compared to primary investments, rapid yield generation with limited duration and expedited deployment, known as J-curve mitigation. Investors gain immediate exposure and cash flow, as secondary buyers acquire an existing, mature portfolio.”
Enrico Pinelli, Head of Client Solutions Italy, Partners Group:
“Generali and Partners Group have a long-standing strategic relationship and successful investment collaboration, and we are very excited to be working with Generali Investments in this new partnership. Through this strategic collaboration, our firms will bring multiple benefits in terms of originating and underwriting private credit secondaries investments, as well as significant synergies in distribution.”