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Barclay’s private credit partner has struggled to attract fresh investment nearly a year after announcing the bank’s turn, the depreciation hopes the deal could provide the British lender to compete in the $ 1.6m market.
AGL loan management unveils its private credit platform last April with the benefit of $ 1 billion anchor investment from investment authority Abu Dhabi (Adia) and an exclusive arrangement with Barclays. But since then he has struggled to withdraw other investors in his fund.
Excluding the commitment from Adadia, which backed AGL based in Newoupercas since its launch in 2019, the Fund has attracted less than $ 70 million capital from other investors during the first quarter, submissions to the US Securities and Exchange Commission.
The process of raising funds was described as “slow” by two people with knowledge of efforts. One of the people said it was “difficult to raise funding” because Agl “has no private loan record”.
When it began, the partnership was declared a way for Barclays to use the growing market on private loans, where investment funds write loans that were traditionally imposed by banks, and both firms agreed to a five -year co -operation agreement as part of the deal.
Barclays did not execute his own funds, but AGL was entitled to first rejection of the bank’s deals. It can also invest in transactions signed by other banks.
Taylor Wright, co-chief of Barclays’s investment banking, said at the time that there was a “strong desire” from the bank’s clients “to work with a partner who could deliver a full range of funding solutions. And the strong investment capabilities of angle and the track make them ideal.”
However, in her annual report, Agl told investors that its limited record is a risk factor and noted that many of its competitors “are more experienced, significantly larger and have significantly greater financial, technical and marketing resources than we do”. The Fund cited $ 473 million in investments at the end of last year.
Financing difficulties are a symptom of slowing down private markets, which has reduced the ability of major investors to execute new funds.
Private fundraising for the third year in a row in 2024, with the lion’s part of the new liabilities establishing established players, according to suspension data.
Two people reported the partnership dismissed the proposal that raising funds was slow, noting that Barclays and Agl had not set difficult goals for the effort. The second person said that Agl was in conversation with potential investors who were still taking appropriate attention to the Fund.
“We are very pleased with the high level of interest for the new AGLE private platform with all investments in line with our differentiated strategy since the launch in October,” AGLE said in a statement.
“Barclays delivers a full range of strategic and customer funding solutions, including direct loans,” the bank said. “We are pleased with how the partnership with AGLE is advancing and looking forward to continuing to improve our capabilities in this space.”
The strength of traditional bond and loan markets has limited any outcome for the bank from the challenges of raising funds. Banks, including Barclays, were enjoyable to commit to new ransom funds, as markets returned.
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