AllianceBernstein has launched a new platform to lend directly to U.S. middle-market companies, according to a company statement.
The platform is called AllianceBernstein Private Credit Investors and the company has raised $500 million for the business.
The platform will focus on privately negotiated, directly sourced first-lien, unitranche and second-lien loans, as well as select mezzanine, structured preferred stock, and minority investments with co-investors. Longer term, the platform also plans to target global borrowers.
Brent Humphries, the former president of Barclays Private Credit Partners LLC, will lead the new initiative at AllianceBernstein. He will be joined by several former senior team members from Barclays: Jay Ramakrishnan, Patrick Fear, and Shishir Agrawal. Wesley Raper will be chief operating officer for the business.
The team has particular expertise in health care services and health care IT, communications infrastructure, software and technology-enabled services, and non-discretionary consumer businesses.
“We have strong growth ambitions for the business, but first and foremost our focus is making good loans to good companies. We will grow as the market demand presents itself,” said Humphries.
The team will target companies generating annual EBITDA of $5-50 million for directly sourced loans of up to $75 million.
The middle market has experienced an influx of new participants due to changing regulations and the resulting pullback from banks.
“Our clients are increasingly looking to increase their exposure to direct lending strategies which offer potential for increased yield and lower mark-to-market volatility. For investors willing to give up some liquidity, this asset class makes a lot of sense as part of their core credit portfolio,” said Matthew Bass, COO of AllianceBernstein’s Alternatives business. – Abby Latour