Barclays PLC BCS sets its sights on the private credit market with a groundbreaking move. In collaboration with AGL Credit Management, a distinguished investment manager with expertise in corporate credit strategies, the company unveiled a partnership agreement and the debut of AGL Private Credit (AGL PC), a private credit investment platform.
Anchored by a commitment from a subsidiary of the Abu Dhabi Investment Authority (“ADIA”), AGL PC is the brainchild of a strategic alliance that marries AGL’s proven credit proficiency with Barclays’ premier leveraged finance and investment banking origination capabilities.
Expectations are high for AGL PC to concentrate on senior secured loans directly originated for large corporate borrowers. The platform is poised to capitalize on the burgeoning and lucrative crossroads between the private credit, syndicated loan, and high yield bond markets.
Operating autonomously, AGL Private Credit will wield full control over origination, asset selection, portfolio design, and management. Simultaneously, it will enjoy exclusive access to Barclays’ deal pipeline and the authority to initiate transactions firsthand.
Expressing his enthusiasm for the collaboration, Peter Gleysteen, the founder, CEO, and CIO of AGL, remarked, “We have a unique opportunity to combine our firm’s profound expertise in corporate credit investment with Barclays’ robust origination, sector, and advisory acumen to establish a premier private credit platform. As the conventional leveraged finance and private credit markets continue to shift, this venture represents a harmonious extension of our pioneering specialized investment enterprise.”
Gleysteen added, “We are delighted to join forces with Barclays to offer its clientele the advantages of private credit—certainty, agility, and enduring investment alignment, and concurrently, to furnish a private credit avenue to our investor community.”
Taylor Wright, the co-head of investment banking at BCS, noted, “This marks the next phase in fortifying Barclays’ private credit capabilities to complement the superlative prowess of our existing Leveraged Finance platform, which remains adaptive and responsive to market dynamics. Within our client network, there is a resounding desire to engage with a singular partner capable of delivering a full spectrum of financing solutions to advance their strategic goals, and AGL’s robust investment proficiencies and success record position them as an ideal collaborator for us in this initiative.”
Hamad Shahwan Al Dhaheri, the executive director of the Private Equities Department at ADIA, remarked, “Having been an investor in AGL since its inception in 2019, our anchor commitment to AGL PC will underpin the Company’s forthcoming growth phase. We envision substantial investing synergies arising from the fusion of AGL and Barclays’ expertise, leading to a distinctive private credit platform aimed at capitalizing on a clear market opening.”
Noteworthy is the 30.4% surge in BCS shares on the NYSE over the past year, eclipsing the industry’s 19.8% growth.
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Presently, the company is flagged with a Zacks Rank #3 (Hold). For updated information on Zacks #1 Rank (Strong Buy) stocks, check the latest list here.
Competitive Landscape Illuminated
Several financial powerhouses, including Goldman Sachs GS and JPMorgan JPM, have been diligently exploring avenues into the $1.7 trillion global private credit arena, enticed by promising prospects and robust demand in the domain.
In February 2024, GS initiated a pact with Mubadala Investment, an Abu Dhabi sovereign wealth fund, earmarking $1 billion for private credit investments across multiple Asia-Pacific markets, with a particular spotlight on India.
This foray into private credit is anticipated to propel Goldman’s revenue as it aims to streamline its consumer banking business and refocus on core competencies in investment banking, trading, and asset management.
Similarly, JPM has earmarked $10 billion for its private credit strategy, rallying a cadre of lenders to fund the private credit deals it initiates.
JPMorgan held dialogues with sovereign wealth funds, pension funds, endowments, and alternative asset managers.
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