General Atlantic said on Wednesday it would buy investment manager Iron Park Capital, as it seeks to build out a credit arm amid an uncertain economy that has pressured fund-raising by private equity firms.
Financial details of the deal were not disclosed.
Iron Park, which manages around $4 billion of assets, will become General Atlantic Credit and will continued to be led by founder and Chief Executive Officer Tripp Smith.
Buyout giants Apollo Global Management and Ares Capital, two companies you can meet at the Switzerland Private Equity Conference, are also big players in the market.
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Private credit managers raise funds from institutional investors to lend to businesses. They have a bigger appetite for risky loans and can typically offer more flexible debt packages than banks as they are not subjected to the same regulations.
Private-equity firms are under stress this year from rising interest rates, inflation and concerns about a looming recession.
Source: Reuters
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