Alt Investments
Cresset Ties Up Strategic Partnership, Taps Into Private Credit Story
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There's been considerable wealth industry activity in the private credit area, which boomed because its illiquidity premium attracted investors after more than a decade of ultra-low central bank interest rates.
Cresset Partners, the private investment arm of Cresset Capital, the multi-family office and wealth manager, has entered a strategic partnership with NXT Capital, a subsidiary of ORIX USA.
The bespoke program of NXT Capital provides individuals and family offices on Cresset’s platform with access to direct private lower middle market investment opportunities.
The offering will focus on direct lending deals in the lower middle market. Cresset’s Private Credit Fund will provide capital for the portfolio, which will comprise diversified direct investments in floating rate, senior secured loans to lower middle market companies, Cresset said in a statement yesterday.
“As the middle market lending market has grown rapidly over the last few years, sophisticated RIAs like Cresset are increasingly looking to focus on the areas of opportunity within the asset class,” Ted Denniston, co-head of NXT Capital, said.
There has been considerable wealth industry activity in the private credit area, which boomed because its illiquidity premium attracted investors after more than a decade of ultra-low central bank interest rates. There has been some pushback, however, amid concerns about whether the sector is getting over-hyped.
NXT Capital provides structured financing solutions through its direct lending group and targets US-based borrowers with earnings before interest, taxation, depreciation and amortization between $5 million and $50 million. The business, which was founded in 2010, is based in Chicago with offices in Atlanta, Dallas, and New York. It is a wholly-owned subsidiary of ORIX USA. ORIX, founded in 1981, specializing in private credit, real estate, and private equity solutions for middle-market focused borrowers and investors.
For its part, Cresset had more than $45 billion of client assets under management as of April 1 this year.
