In a significant development in the private credit space, AEA Private Debt, the dedicated private credit platform of AEA Investors, has announced the successful closing of an approximately $550 million credit continuation vehicle. This initiative is led by Carlyle AlpInvest, a prominent global private equity investor, which is also contributing additional capital to support the origination of new loans by AEA Private Debt.
The credit continuation vehicle is designed to acquire a diversified and income-generating portfolio of first-lien senior secured loans from AEA Private Debt’s 2016 vintage direct lending fund, specifically the AEA Middle Market Debt Fund III. This portfolio primarily consists of loans made to sponsor-backed U.S. middle-market companies, reflecting a strategic focus on high-quality credit assets.
The transaction is particularly beneficial for existing investors, offering them an attractive liquidity option or the opportunity to reinvest in a robust pool of private credit assets. This move is intended to enhance long-term alignment between AEA Private Debt and its limited partners (LPs), ensuring that the management of these assets continues to be handled by a proven and deeply experienced team.
This deal builds on the existing collaborative relationship between AEA Private Debt and Carlyle AlpInvest, emphasizing Carlyle AlpInvest’s leadership in the credit secondaries market while also validating the differentiated origination and underwriting capabilities of AEA Private Debt.
Financial advisory for the transaction was provided by PJT Partners LP, while legal counsel for AEA Private Debt was handled by Simpson Thacher & Bartlett LLP. Carlyle AlpInvest was represented by Ropes & Gray LLP. Additionally, Wells Fargo provided essential financing for this transaction.
As the deal progresses, stakeholders can expect a focus on regulatory considerations and compliance, although specific antitrust or regulatory approvals required for the transaction have not been detailed in the filing. The successful closing of this credit continuation vehicle is expected to enhance the competitive positioning of both AEA Private Debt and Carlyle AlpInvest in the evolving private credit landscape, with implications for shareholders, employees, and the broader market as they continue to manage and grow their portfolio of high-quality credit assets.