Jefferies eyes €1bn for private credit secondaries vehicle

Jefferies Credit Partners is targeting around €1bn ($1.16bn) for a new vehicle designed to give investors exposure to private credit secondaries while providing the lender with additional capital to originate loans, according to a report by Bloomberg. The fund will acquire loans from Jefferies Credit Partners’ existing portfolio and allocate capital towards new lending, according to unnamed people familiar with the plans. The proposed structure reflects the growing use of secondary transactions by private credit managers seeking to generate liquidity from existing portfolios while creating capacity for further investment. The vehicle is expected to be structured as a continuation fund, or “staple” transaction, with approximately €500m of equity alongside a similar amount of leverage, the people said. Jefferies is advising on the transaction. The fund is also expected to operate on an evergreen basis, allowing it to recycle capital indefinitely while holding loans previously originated by Jefferies Credit Partners.