The Abu Dhabi Investment Authority (ADIA) has committed $1bn to a new $2bn private credit fund launched through a partnership between Barclays and AGL Credit Management, according to a report by Bloomberg.
The report cites an unnamed source as revealing that under the terms of a cooperation agreement between the firms, the fund will originate private credit loans that will give AGL exclusive access to Barclays’ deal flow. AGL will get a first look at every deal Barclays originates that includes a private credit option but will be under no obligation to participate.
ADIA has been an investor in AGL since the firm’s founding, with the its new private credit platform set to operate as an independent manager with “complete control” over origination, asset selection, portfolio construction and portfolio management, according to a statement seen by Bloomberg News.
It will focus on large corporate borrowers and invest in senior secured debt, which has higher repayment priority in the event of a default.
