BlackRock is preparing to launch a private credit loan fund which is aiming to raise up to $1.3bn to distribute to existing investors, according to a report by Bloomberg, citing sources familiar with the plan.
The transaction, which is being arranged by Jefferies Financial Group, will consist of approximately 300 first-lien loan positions and represents one of the largest private credit transfers into a continuation fund, Bloomberg’s sources said.
Neither BlackRock nor Jefferies provided immediate comments on the matter.
This new fund will allow BlackRock to tap into the growing market for secondary private credit trades. Through continuation funds, general partners like BlackRock can repackage existing loans and offer them to secondary-market investors, generating capital that can be paid out to current investors.
This move follows similar activity by firms such as Ares Management Corp, Coller Capital, Pantheon Ventures, and Tikehau Capital, all of whom are expanding the secondary market for private credit — a burgeoning industry that offers investors early exit options. Recently, the Florida State Board of Administration also entered the market, seeking bids for up to $4bn in its existing private credit stakes.
Earlier this year, Abry Partners completed a $1.6bn continuation fund, marking the largest private credit continuation fund to date, in a transaction primarily funded by Coller Capital.
