Direct lenders shift origination toward energy, defence and hard assets

Private credit managers are shifting new lending away from software toward manufacturing, energy and defence, according to Alternative Credit Investor. Investec's Greg Betz says activity has centred on "old economy sectors," while Canyon and Federated Hermes point to energy and defence spending.

Liberty Mutual Investments and Elda River extended an existing relationship with a $500m mid-market credit arrangement for borrowers in energy and infrastructure, power and renewables, and energy efficiency.

Bridgepoint, GFH Bank and AIP Capital are building a $1bn aircraft engine leasing platform. GFH Bank holds the cornerstone investor and strategic partner roles, and AIP Capital will lead engine sourcing and trading as the partners raise outside capital.

Kartesia Asset Finance deployed €88m across three asset-backed deals: Spanish search-and-rescue helicopters, Spanish logistics equipment and US offshore-wind vessels.

Benefit Street Partners added the Encina team and a $480m seed portfolio to its asset-backed finance platform, with a Franklin Templeton and BSP-affiliated fund acquiring the Encina-originated commitments; BSP says the combined platform can originate more than $3bn a year.

Carlyle agreed to acquire a $7.7bn pool of Truist consumer loans, mostly fixed-rate, fully amortising loans to prime and super-prime borrowers.

New Holland Capital acquired a majority stake in Foundation Credit, a municipal credit manager, and will invest in its municipal credit and infrastructure debt strategies; New Holland runs more than $8.3bn in absolute return strategies.

Goldman Sachs and Phoenix Financial have partnered, with Phoenix to deploy more than $4bn and gain access to Goldman Sachs Alternatives' private investment-grade, senior direct lending and opportunistic credit capabilities.