🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Wells Fargo and Centerbridge launch $5B fund targeting private-debt market

EditorRachael Rajan
Published 09/27/2023, 02:18 AM
© Reuters.
JPM
-
BARC
-
DBKGn
-
SOGN
-
BN
-

In a move to tap into the burgeoning $1.5 trillion private-debt market, Wells Fargo & Co. and Centerbridge Partners have launched Overland Advisors, a direct-lending fund with a capital of $5 billion. This initiative, announced on Tuesday, closely aligns with strategies adopted by major global financial institutions such as Societe Generale (OTC:SCGLY) SA, Brookfield Asset Management Ltd., Deutsche Bank AG (NYSE:DB), JPMorgan Chase & Co. (NYSE:JPM), and Barclays Plc.

The newly formed fund has already secured nearly $2 billion in initial equity commitments from two prominent investors - the Abu Dhabi Investment Authority and the British Columbia Investment Management Corp. The substantial backing from these entities underscores the growing interest and confidence in alternative capital structures that are growth-oriented.

Charlie Scharf, CEO of Wells Fargo, and Jeff Aronson, co-founder of Centerbridge Partners, both view this venture as an innovative approach to offering clients alternative capital structures focused on growth. They believe that Overland Advisors will provide a unique platform for investors seeking exposure to the thriving private-debt market.

This development comes at a time when private debt has become an increasingly attractive asset class for investors worldwide. The launch of Overland Advisors is expected to further stimulate this trend, providing more avenues for investments in the private debt sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.