Jefferies Credit Partners is targeting €1 billion (approximately $1.16 billion) for a new fund focused on private credit secondaries. This initiative will allow the firm to purchase loans from its current portfolios and inject fresh capital into new lending opportunities. The move is a response to increasing demand for liquidity in the private credit market.
The fund, expected to be structured as a continuation fund or "staple" transaction, will involve about €500 million in equity and a similar amount in leverage. It is designed to operate on an evergreen basis, enabling continuous capital recycling and the holding of previously originated loans. Jefferies is also advising on this transaction.
This new vehicle builds on Jefferies Credit Partners' existing assets under management, which stand at roughly $25 billion across direct lending and collateralized loan obligation strategies. The firm previously closed its Direct Lending Fund II with over $2.1 billion in commitments in 2023, and a filing for Fund III appeared in early 2025. The secondaries fund provides a built-in source of deal flow by acquiring loans from Jefferies' own books, distinguishing it from competitors who might rely on competitive auctions. This reflects a broader industry trend where private credit managers increasingly use secondary transactions to generate liquidity and expand their lending capacity.
