(Bloomberg) -- Private credit firms Oak Hill Advisors and One Investment Management are joining forces in the latest tie-up between fund managers looking to cash in on the US$1.7 trillion market.
Both firms will contribute to the new venture, jointly earmarking up to $5 billion of pre-raised investible capital, according to a statement seen by Bloomberg News. The new fund will invest in upper mid-market and large European companies by providing loans including first-lien and unitranches, according to a person familiar with the matter.
The partnership follows a tie-up earlier this year between Barclays Plc and AGL Credit Management and an investment by Nomura Holdings Inc. in fledgling private lending firm Corinthia Global Management.
Spokespeople for Oak Hill Advisors and OneIM declined to comment on the new agreement.
OneIM was set up in 2022 by SoftBank Vision Fund’s key architect Rajeev Misra, and has raised roughly $7 billion. Bloomberg reported in September that the firm was planning to hire staff in New York, London and Abu Dhabi.
Oak Hill is an established player in the private credit market and has been providing direct loans since 2002. As of the end of the first quarter, it had $64 billion under management across performing and distressed credit related investments in North America, Europe and other geographies, according to its website.
Oak Hill’s major investments include a unitranche for the buyout of Adevinta last year, the largest direct-lending financing ever arranged in Europe. In recent months, OneIM provided a unitranche to finance Apollo’s acquisition of London-based The Restaurant Group Plc, the owner of restaurant chain Wagamama.
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