Brightwood Capital Advisors, a private credit firm with over $6bn (£4.58bn) in assets under management (AUM), has taken over management of two private credit funds previously managed by Capital Dynamics.

Under the terms of the transaction, Brightwood will assume management of the funds’ portfolios, representing approximately $300m in commitments. The existing fund structures will remain in place, allowing current limited partners to maintain their investments with no additional capital commitment required.

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Brightwood and Capital Dynamics have worked closely together to offer a continued investment opportunity and liquidity through a secondary purchase option, in partnership with Tikehau Capital, marking the second transaction Brightwood has completed with Tikehau in the past 18 months.

“We are thrilled to welcome these portfolios and investors to the Brightwood platform,” said Sengal Selassie, chief executive of Brightwood.

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“This transaction demonstrates Brightwood’s dynamic approach to partnership and our ability to deliver tailored solutions in an evolving private credit landscape.”

“We’re delighted to conclude this process by partnering with Brightwood on this transaction. Through our comprehensive strategic approach, we were able to find a partner with strong alignment, investment acumen, and robust operational capabilities for the next stage of the funds’ growth,” added Martin Hahn, chief executive at Capital Dynamics.

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