Jefferies Credit Partners, a leading private credit manager and the asset management arm of Jefferies Finance LLC, announced the intention to launch a private placement of a business development company (“BDC”) to further enhance its lending capacity in the private credit space. Jefferies Finance is a joint venture of Jefferies Financial Group Inc. and Massachusetts Mutual Life Insurance Company (“MassMutual”).
“This independently run platform will benefit from a unique origination engine due to its partnership with Jefferies’ leading investment banking franchise, driving exclusive access to differentiated investment opportunities.”
The newly formed BDC will focus on first lien senior secured loans to private equity sponsored U.S. companies. Investments will target upper middle market borrowers that have greater than $75 million of EBITDA and often benefit from established track records, seasoned management and operational scale.
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A wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) has committed to invest $625 million of equity in the BDC in order to anchor the BDC launch. The BDC expects to launch with approximately $1.7 billion of investable capital and aims to take advantage of strong private credit market conditions while leveraging Jefferies’ unique position serving sponsors.
Thomas Brady, President of Jefferies Finance, said, “This agreement with ADIA to seed our first BDC comes as the tailwinds in the private credit market have never been stronger. We value the trust ADIA has shown in us and look forward to a long and successful relationship.”
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Hamad Shahwan AlDhaheri, Executive Director of the Private Equities Department at ADIA, commented, “This independently run platform will benefit from a unique origination engine due to its partnership with Jefferies’ leading investment banking franchise, driving exclusive access to differentiated investment opportunities.”
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