- Chimera Capital and the investment firm Alpha Wave Worldwide have formed an open-ended credit fund with $2B in initial commitments that will focus on the global private credit market.
- The Abu Dhabi asset management company and Alpha Wave Global will co-manage the Alpha Wave Private Credit fund, which aims to find areas where there is a capital shortage and invest in private loans as well as other credit instruments. The fund seeks to provide investors with current income by creating or taking part in private, senior secured, floating rate loans for businesses seeking credit solutions.
Why it matters
The announcement of the new fund coincides with the private credit market reaching $1.3T. Private credit makes up around 17% of all outstanding credit and has grown at a rate of 14% per year since 2000, which is roughly twice as fast as public credit. Similar arrangements were reached last month between the private equity company KKR and Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi that manages more than $284B in assets abroad. Both firms will provide a combined $1B in long-term financing and will offer sponsors and businesses credit solutions.
