Wells Fargo and Centerbridge Launch $5 Billion Private-Credit Fund
- Fund will target non-sponsor-backed middle-market firms
- Wells Fargo to provide client sourcing, minority investment
Wells Fargo joins a growing list of banks muscling into the private-credit space in recent weeks.
Photographer: Michael Nagle/BloombergWells Fargo & Co. and Centerbridge Partners are joining forces on a direct-lending fund, the latest in a flurry of bank efforts to gain share in the $1.5 trillion private-debt market.
The fund will target at least $5 billion, including $2.5 billion in equity commitments, and will primarily make senior secured loans to non-sponsor-backed middle-market firms in North America, according to a statement Tuesday. Centerbridge created a subsidiary called Overland Advisors to manage the business-development company, which is an investment vehicle popular in private credit. Wells Fargo, the fourth-largest US bank, will provide client sourcing and a minority investment.