Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
⚠ Selloff or Market Correction? Either Way, Here's What to Do Next
See Overvalued Stocks
GoldenTree raises $1.35 billion in first private credit fund
Published Mar 11, 2024 06:06AM ET
Updated Mar 11, 2024 12:21PM ET
© Reuters. Steven Tananbaum, Founder, Managing Partner and Chief Investment Officer, GoldenTree Asset Management LP speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. REUTERS/Mike Blake/File Photo
By Carolina Mandl
NEW YORK (Reuters) - GoldenTree Asset Management raised over $1.35 billion for its first pure private credit fund, the firm said in a statement on Monday, getting a strong foothold in a booming market.
The firm, with $53 billion in assets under management, has already invested $6 billion in private credit through its other fixed income funds for over the last ten years, but it had never launched a fund fully dedicated to an asset class that has benefited from banks pulling back from lending in recent years to preserve capital.
The fund, which started receiving contributions in 2022, has drawn almost half the capital raised, and posted a net return of 22%, according to the statement. The fund has extended loans to roughly 30 companies across ten industries so far.
A source familiar with the matter said GoldenTree's fund has been lending to large companies in the U.S. and in Europe, with annual earnings before interest, taxes, depreciation and amortization (EBITDA) above $500 million, but without signing big checks to each of them individually.
Lee Kruter, partner and head of performing credit at GoldenTree, said in a statement the firm is more focused on transactions that can yield "differentiated risk-adjusted returns" than on "executing on a high volume of transactions."
An over $1.6 trillion industry, the private credit sector is expected to hit $2.8 trillion in assets by 2028, according to Preqin, luring more assets managers and investors to the industry.
"Private credit continues to experience the most innovation across credit asset classes," said Steve Tananbaum, GoldenTree’s founder and Chief Investment Officer, in the statement.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.