Kayne Anderson Private Credit sells minority stake to fund retail expansion
Kayne Anderson Private Credit, a US direct lending platform, has sold a minority stake in itself to fund its expansion into new areas of lending and retail offerings.
The Chicago-based firm, which has $6bn (£4.9bn) in assets under management, is looking to accelerate its growth during a “sweet spot” for the private credit market, Ken Leonard, co-head of Kayne Anderson Private Credit, told Bloomberg.
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The minority stake was reportedly sold to Bonaccord Capital Partners, a subsidiary of asset manager P10.
The platform now plans to provide warehouse facilities for new investment vehicles, backstop lines for its business development companies – essentially an insurance policy if primary funding is insufficient – and “seasoning” for loans to offshore investors, which reduces tax liabilities, Leonard said.
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The deal will also enable the firm to expand its origination capabilities, including targeting retail channels to raise funds, he told Bloomberg.
The private credit market is booming. Average returns, on an unlevered basis, currently range from 12 per cent to 13 per cent, up from seven per cent to eight per cent in recent years, in part due to higher interest rates, said Leonard.
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