Apollo Global Management and Goldman Sachs Asset Management are planning to roll out private credit funds for affluent European investors, Bloomberg has reported.
Through the new offering, the companies aim to take advantage of the burgeoning demand for private lending in leveraged buyouts in Europe.
The companies have started developing products that will target wealthy individual investors interested in private lending for leveraged buyouts in the region, people privy to the development told the publication.
The private credit market has witnessed tremendous growth in recent past as direct lenders try to take the position of bank underwriters in larger leveraged buyout financings, the report said.
The $1.4 trillion private credit market is projected to reach $2.3 trillion by 2027, according to data provider Preqin.
Goldman Sachs Asset Management global head of the retail client business Padideh Raphael in an emailed statement, seen by Bloomberg, said that “enabling individual investors to access the diversification and performance benefits of private markets is a major focus” of the firm.
Apollo’s and Goldman’s actions come close on the heels of Blackstone launching its first private credit fund of its kind last year.
Blackstone’s private credit fund is based in Luxembourg and targets affluent investors in Europe.
Blackstone’s fund is operated as an ongoing perpetual vehicle, in contrast to standard private credit vehicles for institutional investors where capital is locked up for a fixed period.
It is expected that Apollo Global Management and Goldman Sachs Asset Management may also consider similar structure for their fund.
