Direct lending

The Dutch pension manager is also looking for more special situations funds and weighing its approach to US investments, says its head of alternative credit.

Spread compression and lack of dealflow are among the concerns, but there is hope of an improving picture as the year progresses.

The joint venture will invest up to $1.7bn in US mid-market borrowers, and leverage their distinct strengths.

Schwartz identified lending opportunities in Europe and insurance growth in Asia during the Q1 earnings call.

The asset manager saw record capital commitments of $20.2bn on top of strong deployment.

The firm’s AUM grew 17% to $785bn, with its multi-asset credit platform reaching $8.5bn.

The proportion of deals completed by private credit is up six percentage points – from 39% to 45% – year on year.

Private lenders have a competitive advantage against the banks and opportunities are diversifying.

The fund is the Canadian firm’s first senior debt strategy in 25 years.