Societe Generale and Brookfield partner to launch a EUR 10 billion private debt
Global partnership brings large-scale private capital to investment grade market while giving investors access to high quality real asset credit opportunities.
Societe Generale and Brookfield Asset Management today announced a strategic partnership to originate and distribute high-quality private credit investments through a private investment grade debt fund. The initial fund is targeting a total of EUR 10 billion over the next four years and will launch with EUR 2.5 billion of seed funding at inception.
The fully integrated vehicle with origination and distribution capabilities, will provide issuers with tailored investment grade financing options and investors with differentiated high-quality investment opportunities. In particular, the fund is expected to meet the needs of insurance companies with investment-grade products tailored to meet their ratings and duration requirements.
Founded on a strong and long-standing relationship between Societe Generale and Brookfield, the partnership will leverage both companies’ origination capabilities, deep operating expertise, and real asset knowledge, as well as strong institutional relationships to bring additional value to their respective clients and shareholders. It will also allow Societe Generale and Brookfield to significantly increase their footprint in financing the global economy over time by providing large scale commitments with differentiated forms of capital.
Slawomir Krupa, CEO of Societe Generale, said: “We are delighted by this partnership, which provides an entirely new answer to the growing demand for private debt and will have a positive impact on the real economy while simultaneously scaling up Societe Generale’s origination and distribution capabilities. This pioneering approach represents a unique alignment of interests between two leading players in their respective fields.”
Bruce Flatt, CEO of Brookfield, commented: “We’re excited to bring our own capital and our institutional client capital to unlock a tremendous opportunity within the investment grade market to support critical industries that underpin the global economy. We look forward to being a partner of choice for borrowers looking for bespoke scale capital and to institutions seeking exposure to investment grade private credit.”
The seed fund will focus on two strategies: one for real assets credit across the power, renewables, data, midstream and transportation sectors, and another one for fund finance. The partnership is expected to develop over time across strategies and investment structures, leveraging Societe Generale’s and Brookfield’s wide origination capabilities and deep relationships with institutional investors as well as insurance and credit syndication clients.