Alternative asset manager General Atlantic is in advanced discussions with Swiss bank UBS Group AG over establishing a strategic partnership targeting the $1.6tn private credit market, according to a report by Bloomberg.
The report cites unnamed sources familiar with the negotiations as revealing that the proposed tie-up would see UBS’s investment bank originate loans, giving GA Credit – General Atlantic’s private credit arm – preferred access or a “first look” at deal flow. An official announcement could come as early as next week.
The partnership is expected to focus on large-cap lending, targeting North American and European borrowers with EBITDA of $50m or more, and offering loans of up to $500m, according to people close to the deal. The collaboration is said to have taken shape following high-level discussions between UBS CEO Sergio Ermotti and General Atlantic CEO Bill Ford.
The move positions UBS to bolster its presence in the private debt and leveraged finance space at a time when private credit has become an increasingly attractive alternative to traditional bank financing. Direct lenders’ flexibility and predictability have enabled them to gain market share from Wall Street’s syndicate-driven lending desks.
The deal also aligns UBS with a broader trend among global banks forging partnerships to retain a foothold in private credit markets. JPMorgan, for instance, has committed an additional $50bn to direct lending and entered alliances with credit funds, while Wells Fargo partnered with Centerbridge Partners on a $5bn vehicle. In Europe, Societe Generale joined forces with Brookfield for a €10bn debt fund, and Barclays teamed up with AGL Credit Management and ADIA on a similar initiative.
General Atlantic’s credit platform, GA Credit, currently manages $4.8bn in assets and is led by Tripp Smith, the co-founder of GSO Capital Partners (now Blackstone Credit).
Both UBS and General Atlantic declined to comment on the discussions.
