European investment firm Armen, which focuses on buying stake in private equity firms, has made its first foray into the alternative credit space with the acquisition of a 16% stake in Chorus Capital, provider of default protection for loan portfolios, according to a report by Bloomberg.
The report cites a statement seen by Bloomberg as confirming that as part of the deal, Chorus Capital’s senior management will reinvest a significant portion of the proceeds into the firm’s upcoming fund. The remaining funds will be directed towards expanding the firm’s growth in risk-sharing deals.
The market for significant risk transfers (SRTs), which help lenders improve their profitability ratios by transferring loan risk, has seen substantial growth. According to Chorus Capital, global SRT issuance reached a record $9.5bn in the first half of 2024, up from $7.2bn during the same period in the previous two years.
Founded in 2011 by ex-Goldman Sachs banker Gilles Marchesin, Chorus Capital has positioned itself as a key player in the risk-sharing sector.
The transaction is Armen’s third acquisition since its was founded in 2022, with the firm having previously purchased a stake in Rgreen Invest, which focuses on energy transition infrastructure projects, and acquired a minority stake in French investment firm Private Corner.
