Generali InvestmentsIn partnership with Partners Group, announced the launch of the Generali Private Credit Secondaries Fund, an innovative fund designed to seize the opportunities of the growing secondary market of Private Credit. The fund, “aimed at professional investors in Europe, the Middle East and Asia“, represents a strategic move to strengthen the Group's presence in the alternative assets segment.
The fund will be structured as Reserved Alternative Investment Fund (RAIF) based in Luxembourg. The portfolio management will be entrusted to Generali Asset Management, while Partners Group will operate as investment advisor e joint distributor. Classified as Article 8 according to the SFDR regulation, the fund aims to combine performance and sustainability.
A Growing $1,6 Trillion Market
Il Secondary Private Credit It is a rapidly growing market. According to estimates by Preqin, the total assets of the sector today exceed 1.600 billion dollars. This favorable context makes the new fund a strategic lever to attract capital and offer investors returns higher than the risk.
"The Fund will invest in a broad range of transactions in the secondary Private Credit market.”, states Generali, underlining the desire to cover a broad spectrum of operations, both LP-led and GP-led.
The synergy between Generali and Partners Group
La collaboration between the two entities aims to “grow in the secondary Private Credit market” by leveraging their respective expertise. Generali Asset Management will bring its origination and underwriting capabilities, while Partners Group will offer know-how gained in over twenty years in Private Equity and Private Credit.
“The Fund will leverage the competitive advantages of Generali Investments and benefit from Partners Group's expertise in Private Credit investments,” the press release states.
Secondo Marco Zanuso, Global Head of Sales & Marketing at Generali Investments, “we are well positioned to offer a wide range of investment strategies that can support our clients in achieving their goals […] in a context of clear inequality between supply and demand in the secondary market, we are very pleased with the launch of this new fund in collaboration with Partners Group”.
Unlike primary investments, secondary investments offer immediate access to mature portfolios. Investors can thus generate early cash flows, avoid the “J-curve” – typical of closed-end funds – and obtain more attractive risk-adjusted returns.
There are two main types of transactions in the secondary Private Credit sector: LP-led, Limited Partners sell their shares in existing funds to obtain early liquidity and GP-led, General Partners transfer assets from existing funds to new vehicles (continuation funds), extending their useful life and maximizing their value.
Marco Busca, Head of Indirect Private Debt at Generali Asset Management, said: “This strategy offers unique opportunities […] higher returns than primary investments, rapid return generation thanks to a limited duration and an effective use of capital”.
A new axis to attract global capital
The synergy between Generali and Partners Group also represents a point of strength in distribution, with access to a global network of professional investors.
“We are proud to embark on this new partnership with Generali Investments,” said Enrico Pinelli, Head of Client Solutions Italy of Partners Group. “Our companies will bring multiple benefits in terms of origination and underwriting of investments in the secondary Private Credit market”.
The fund is part of an increasingly consolidated market trend, as explained Henry Lusa, Managing Director, Private Credit at Partners Group: “The secondary market for Private Credit is gaining increasing momentum […] an increasing number of LPs will use the secondary market as a strategic tool for managing the portfolio of their Private Credit investments”.
A project based on solid foundations
With 645,2 billion euros under management as of 31 December 2024, Generali Investments is among the leading European managers. Within the group, Generali Asset Management manages 379,2 billion, with a consolidated track record on public and private assets.
Partners Group, for its part, is a colossus for over 150 billion dollars under management, with 1.800 professionals worldwide. His experience in deal origination and secondary Private Credit will be crucial to the success of the new fund.
