UBS nearing push into $1.6T private credit market

UBS nearing push into $1.6T private credit market
Strategic partnership with General Atlantic is reportedly close to fruition
APR 24, 2025
By  Bloomberg

by Gillian Tan, Jan-Henrik Förster and Silas Brown

UBS Group AG is in advanced talks with alternative-asset manager General Atlantic to push into the $1.6 trillion private credit market through a strategic partnership, according to people familiar with the matter. 

The two firms are working toward a cooperation agreement that could be announced as soon as next week, the people said, asking not to be identified because the talks are private. The partnership will involve UBS’s investment bank originating loans for which GA Credit will receive preferred status or a so-called “first-look”, one of the people said. 

The partnership will aim to make loans of as much as $500 million and will focus on borrowers in North America and Europe with earnings before interest, taxes, depreciation and amortization of $50 million or more, one of the people said. The partnership materialized from a conversation between UBS CEO Sergio Ermotti and General Atlantic chairman and CEO Bill Ford, the person added.

Representatives for both firms declined to comment.

Large Wall Street banks, the traditional funding source for corporations and buyout firms, have gradually lost market share to private-credit funds in recent years, as borrowers turn to the more flexible terms and predictable financing costs offered by direct lenders.

Big banks have responded by hammering out lending partnerships in all shapes and forms. JPMorgan Chase & Co. recently set aside an additional $50 billion to expand into direct lending, while forging partnerships with credit funds, and Wells Fargo & Co. joined forces with Centerbridge Partners on a $5 billion direct-lending fund in 2023. 

Over in Europe, Societe Generale SA and Brookfield Asset Management partnered to launch a €10 billion private debt fund. Last year, Barclays Plc and AGL Credit Management teamed up with backing from the Abu Dhabi Investment Authority.

Such agreements often define the types of loans a private credit fund will manage, with the bank originating loans that fit that criteria and selling them to the asset manager.

UBS last year revamped the way it sells private-market funds under the leadership of wealth management chiefs Iqbal Khan and Rob Karofsky. UBS also has many touchpoints with alternative asset managers including buyout funds through its investment bank, which advises sponsors across the globe. 

The partnership would be the latest indication of the Swiss bank’s ambition to grow its global banking business and leveraged finance offerings in the Americas.

General Atlantic’s credit unit, GA Credit, manages $4.8 billion of assets, according to its website. It is led by Tripp Smith, who co-founded GSO Capital Partners, now known as Blackstone Credit.

 

Copyright Bloomberg News

Latest News

Former CFA Institute exec charged with embezzling almost $5M
Former CFA Institute exec charged with embezzling almost $5M

Ex-CMO accused of using the organization’s money to fund a luxury lifestyle.

'Not every RIA needs to sell to a big aggregator'
'Not every RIA needs to sell to a big aggregator'

Altruist founder and CEO Jason Wenk shares insights on the custodial platform's refresh, how it's striking a chord among entrepreneurial advisors, and what's ahead after its latest $152 million funding round.

Northern Trust vows continued independence after BNY report
Northern Trust vows continued independence after BNY report

Following Wall Street Journal reporting from unnamed sources, the Chicago-based financial giant stressed its commitment to "delivering long-term value to our stakeholders."

California advisor who took cash from cannabis client barred
California advisor who took cash from cannabis client barred

The advisor, Andrew Nash of El Capitan Advisors, used the funds to buy a house, according to the SEC.

Robo platform Wealthfront teases IPO plans
Robo platform Wealthfront teases IPO plans

The digital investment platform's announcement of a confidential submission to the SEC comes amid a broader trend of consumer fintech firms going to market.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave