Centerbridge Partners and Wells Fargo & Company are entering into a strategic relationship to launch a new $5bn private credit fund which will primarily make senior secured loans to non-sponsor-backed middle-market firms in North America.
Centerbridge has launched a new subsidiary, Overland Advisors, to manager the business-development company, an investment vehicle popular in private credit. Wells Fargo, the fourth-largest US bank, will provide client sourcing from its middle market customer base, as well as making a minority investment in the fund.
In addition to expanding financing access to the non-sponsor segment, Overland will pursue other transactions, including traditional sponsor-backed direct lending opportunities, according to a press statement.
Anchor investors, including wholly owned subsidiaries of the Abu Dhabi Investment Authority (ADIA) and British Columbia Investment Management Corporation (BCI), have already committed to providing nearly $2 billion in initial equity.