Coller Capital has completed a $3bn continuation fund transaction with TPG Twin Brook Capital Partners, the largest private credit secondaries deal on record, according to a report by Bloomberg.

The agreement transfers a portfolio of loans from TPG Twin Brook’s 2016 and 2018 funds into a new vehicle, providing liquidity for existing investors while allowing the manager to retain control of the assets.

The portfolio comprises floating-rate, senior secured loans to North American middle-market companies backed by private equity sponsors. The deal marks TPG Twin Brook’s first continuation fund and underscores the growing role of such vehicles in private credit.

Continuation funds have gained traction as a means for managers to extend ownership of quality assets while offering an exit route for investors. Earlier this year, Ares Management closed a $1.2bn continuation fund deal with Antares Capital.

The transaction follows Coller’s $6.8bn fundraise in June for its Coller Credit Opportunities II Fund, further strengthening its position in the rapidly expanding private credit secondaries market.

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