The new JV will invest and handle various private debt investments in the targeted markets. It also expects to tap the increasing private credit opportunities in the countries.
Formation of the JV comes at a time when Australian banks are turning their attention away from corporate lending, with the rising number of businesses looking for private funding for carrying out acquisitions and other growth-related activities.
The volume of private equity sponsors, who seek the flexibility and customised debt facilities from private credit providers, is also in the rise, stated Carlyle.
The JV, name of which has not been disclosed, will leverage amicaa’s local knowledge and collaborations, and Carlyle’s global credit platform’s investment management knowhow and investor partnerships.
For the JV, amicaa intends to source local opportunities, while Carlyle will deliver investment solutions, processes and specialist resources of its $143bn global credit platform, along with representation on the investment committee.
According to Carlyle, the JV will manage two main strategies, namely amicaa Core Plus and amicaa Credit Opportunities.
Developed in partnership with local superannuation and private wealth investors, amicaa Core Plus is expected to offer steady, income-oriented returns from Australian and New Zealand corporate loan investments.
The amicaa Credit Opportunities strategy seeks to deliver financing solutions to firms that undergo transitions through acquisitions, growth or refinancing and require customised capital solution in place of the usual course of business.
Carlyle Global Credit managing director Taj Sidhu and the company’s Carlyle Credit Opportunities division member Jay Ditmarsch will look after Carlyle’s share of business in the JV.
The company plans to inject capital in the JV from its Credit Opportunities strategy, which has provided more than $8bn across the globe since its inception in 2017.
Sidhu said: “We see a multi-billion dollar opportunity to deploy capital in Australia and New Zealand, a structurally growing market, and look forward to working with the amicaa team to build out the long-term growth of the business.”