Fifth Third Bancorp has formed a strategic partnership with Eldridge, the asset management and insurance platform backed by Todd Boehly’s Eldridge Industries, to expand origination and deployment opportunities across the private credit space, according to a report by Bloomberg.
Under the agreement, Fifth Third will refer lending opportunities that fall outside its traditional credit box to Eldridge, which will evaluate and underwrite the deals. In return, Fifth Third will earn fees tied to origination and could provide ancillary services such as revolving credit facilities, treasury management, and payments infrastructure, executives from both firms confirmed.
The two parties anticipate originating $2bn to $3bn in private credit transactions over the next two to three years, though no formal capital commitment targets have been disclosed.
The initiative will allow Eldridge to tap into Fifth Third’s national footprint, leveraging a network of over 400 bankers across the bank’s middle-market and investment banking units to source and evaluate opportunities.
The partnership reflects a broader trend of collaboration between traditional banks and private credit managers, as both seek new ways to serve the middle market. While regional banks have historically focused on balance-sheet lending, they are increasingly forging origination partnerships with non-bank lenders to monetise deal flow without absorbing credit risk. At the same time, direct lenders are under growing pressure to source transactions amid elevated dry powder and rising competition.
Recent examples include KeyCorp’s origination partnership with Blackstone Credit & Insurance and PNC’s middle-market credit platform with TCW Group.
Fifth Third CFO Bryan Preston highlighted the strategic value of offering both conventional financing and private credit options.
The partnership with Eldridge builds on an existing relationship between the firms dating back to 2019, when Fifth Third participated in a lending syndicate for Stonebriar Commercial Finance, an Eldridge Industries portfolio company. Sandler, who co-founded Stonebriar, was named CEO of the business in September.
Eldridge formally launched its asset management platform earlier this year, housing strategies in private credit, liquid credit, and asset-based finance, alongside its insurance operations.
