OppenheimerFunds and The Carlyle Group have formed a new joint venture, which will provide global private credit opportunities for high-net-worth (HNW) investors and advisers primarily focused on the U.S. market. The joint venture will begin operating in 2018.
The new platform will aim to deliver long-term income solutions not generally available to accredited investors. Its initial focus will include allocation and underwriting across investments in opportunistic credit, direct lending, distressed transactions and structured credit assets in the United States, Europe and Asia.
Institutional investors have traditionally been able to capitalize on the unique market premium of non-public investing strategies. Providing the same access to the non-institutional segment will add another source of diversification for investors seeking greater risk-adjusted returns in a low-yield and rising-rate environment.
The joint venture allows OppenheimerFunds to enter into the private credit space, said Art Steinmetz, chairman and CEO of OppenheimerFunds. “This venture joins two marquee names in the industry to provide access to a private credit solution for HNW clients and is a great complement to our active mutual funds and beta solutions strategies.”
The joint venture will be led by co-heads Kamal Bhatia, head of investment solutions for OppenheimerFunds, and Mark Jenkins, head of global credit for The Carlyle Group.
