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Demand for yielding investment strategies is driving increased interest in private debt
HarbourVest, a leading, global private markets investment firm for over 30 years and an established investor in mezzanine and European senior loans, intends to expand its private debt strategy
CIFC, a leading U.S. loan specialist asset manager, and HarbourVest, will jointly deliver senior loan expertise to HarbourVest investors
HarbourVest Partners, LLC ("HarbourVest") and CIFC Asset Management ("CIFC") (NASDAQ:CIFC) announced today they are forming a strategic relationship. CIFC's U.S. senior debt capabilities will complement HarbourVest's established capabilities and enable innovative yield-oriented investment solutions.
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"This strategic relationship with CIFC allows HarbourVest to continue to provide our clients with best of breed opportunities across the private markets including U.S. senior secured corporate loans exclusively with CIFC," said
Rob Wadsworth, managing director of HarbourVest. "With historically low interest rates expected to prevail for the foreseeable future, many institutional investors are interested in strategies that can provide higher current yields and the potential for strong returns over the long term."
This relationship is a natural extension of HarbourVest's strategy in the private credit markets. The firm began investing into credit funds in 1995, has provided mezzanine loans to private companies since 2003, and has been active in the European senior loan market since 2010. (An affiliate of HarbourVest serves as the investment manager for HarbourVest Senior Loans Europe.) HarbourVest has been investing in private markets for over 30 years.
"We are excited to be teaming up with HarbourVest and see significant opportunity to jointly deliver investment solutions focused on private debt. This relationship will have great synergy between our complementary organizations, and many of the private companies within our portfolios are backed by the same general partners with whom HarbourVest has long-standing relationships," said
Peter Gleysteen, Chief Executive Officer of CIFC.
In connection with the transaction, HarbourVest is expected to become a minority shareholder of CIFC and to enter into a revenue-sharing arrangement with respect to the investment advisory fees generated by jointly-branded private debt programs.