Latest news with #privateCredit
Reuters
12-06-2025
- Business
- Reuters
Carlyle teams up with Citi to invest in fintech lenders
June 12 (Reuters) - Investment firm Carlyle Group (CG.O), opens new tab has partnered with U.S. banking giant Citigroup (C.N), opens new tab to provide asset-backed financing to fintech lenders, the companies said on Thursday. As part of the partnership, Carlyle and Citi will share market intelligence, and explore co-investment and financing opportunities, the companies added. The rise of fintech lending, fueled by convenient application processes and flexible credit, is pushing traditional financial heavyweights to gain exposure to the space. Facing surging demand from borrowers, fintech lenders are also increasingly turning to investment firms for capital. "Demand for scalable and tailored asset-backed financing solutions from fintech lenders has increased as they mature and seek efficient ways to fund their growth," said Akhil Bansal, head of asset-backed finance at Carlyle. Asset-backed financing is a type of lending secured by a pool of assets, and is one of the fastest-growing segments of the private credit market. Citi also has a $25 billion private credit partnership with Apollo (APO.N), opens new tab.
Bloomberg
11-06-2025
- Business
- Bloomberg
Indian Investors Are Moving to Alternatives, Kotak Mahindra Says
Gautami Gavankar, president of Kotak Mahindra Bank Ltd., says Indian investors are increasingly considering alternative assets and private credit. Real estate plays, private equity funds like pre-IPO funds, infrastructure funds and special situation funds are also gaining traction, she tells the audience at the Bloomberg Invest conference in Hong Kong. (Source: Bloomberg)
Finextra
02-06-2025
- Business
- Finextra
Entering the OTD era: Why originate-to-distribute models are key to portfolio diversification
Join this webinar, hosted in association with FIS, to explore the rise of the originate-to-distribute model, and how AI can help banks optimise their balance sheets and portfolios. What has led to the shift from originate-to-hold to originate-to-distribute (OTD) model, and what are the advantages that an OTD model offers to banks? As private lending increases, what are the main challenges that banks face in the secondary loan trading market? Higher interest rates have led to higher risk for banks. How can organisations improve the economic value of loans after regulatory and capital cost? What are the opportunities AI offers in the optimisation of portfolios, risk management and balance sheets? When we look at the lending market, the increase of private credit institutions is one of the major challenges eating into traditional banks' margins. In the UK alone, the private credit market was valued at £1.58 trillion in 2023 and, as more players enter the market, is projected to grow to £2.22 trillion by 2028. Seeing as private credit largely operates outside the traditional regulatory parameters that incumbent bank lenders are subject to, banks not only face increased competition, but also higher capital and regulatory cost. Yet while competition is a significant challenge, it also poses an opportunity as many banks have scaled origination capabilities and can leverage originate-to-distribute (OTD) models to maximize profitability. Distributing more allows banks to do more business, maximise their net interest margin, and boost the economic value of loans while still owning their customer relationships. While the US already has an advanced syndication and secondary loan trading market, the OTD model has started to find a growing foothold in European organisations as well. However, familiar challenges remain: most banks do not have the right data structures in place to optimise their balance sheets and determine the right loans to hold or distribute. Emerging AI technology can help banks identify the assets that, due to liquidity or maturity, have higher-than-usual capital costs, and determine the loans that are more profitable economically and thus should be kept on balance sheets. So how can banks start implementing the right (AI) solutions and strategies to help optimise their loan portfolios? Register for this Finextra webinar, hosted in association with FIS, to join our panel of industry experts who will discuss why growing private lending puts pressure on banks, how distribution can help decrease risk and increase profitability, and how AI can help optimise balance sheets.
Bloomberg
29-05-2025
- Business
- Bloomberg
Pimco's Stracke Sees Asset-Based Finance as Key Area of Growth
Pacific Investment Management Co. is building out its investments in asset-based finance to meet client demands to diversify away from more traditional areas of private credit. 'That's an area that's really picking up speed in terms of the availability of finance outside of banks,' Christian Stracke, president and global head of credit research at Pimco, said in an interview on Bloomberg TV.
Zawya
12-05-2025
- Business
- Zawya
Gulf asset manager Amwal launches $150mln private credit fund
DUBAI - Gulf asset manager Amwal Capital Partners said on Monday it had launched a Shariah-compliant private credit fund for $150 million, targeting companies with a focus on asset-backed solutions for tech-enabled platforms. It will also pursue direct lending opportunities, targeting 12 to 15 transactions over its five-year term, mainly in Saudi Arabia and the United Arab Emirates, the firm said in a statement. The fund, which already exceeded its initial close target, "has attracted leading institutional investors from the region," said Sharif Eid, partner and co-head of fixed income at Amwal. Based in Dubai since 2016, Amwal also opened an office in Riyadh in 2023. It lists sovereign wealth funds, international institutional investors and multi-family offices, among its clients.
