Swiss giant UBS Group is in advanced negotiations with General Atlantic to enter the private credit market through a strategic partnership, Bloomberg has reported, citing sources.
Sources told the publication that the collaboration could be officially announced shortly, potentially within the next week.
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The partnership is expected to focus on originating loans for North American and European borrowers with substantial earnings.
The proposed partnership would grant GA Credit preferred access or a “first-look” to loans originated by UBS’s investment bank.
The targeted loans could be as substantial as $500m, aimed at borrowers with earnings before interest, taxes, depreciation, and amortisation of $50m or more.
This initiative stemmed from discussions between UBS CEO Sergio Ermotti and General Atlantic chairman and CEO Bill Ford, a source told the publication.
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By GlobalDataMeanwhile, UBS has been restructuring its approach to selling private-market funds under wealth management chiefs Iqbal Khan and Rob Karofsky.
In March, reports emerged that UBS Group is contemplating moving its headquarters out of Switzerland if the country mandates the bank to increase its capital reserves by an extra SFr22.05bn ($25bn).
The partnership would signal UBS’s continued ambition to expand its global banking business and leveraged finance offerings, particularly in the Americas.
General Atlantic’s credit division, GA Credit, which is managed by Tripp Smith, a co-founder of what is now known as Blackstone Credit, oversees $4.8bn of assets.
