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.
