Apollo, Goldman plan private credit funds for rich Europeans

Bloomberg

Apollo Global Management and Goldman Sachs Asset Management LP are preparing to launch private credit funds aimed at wealthy European investors, trying to capitalise on a burgeoning corner of the credit market.
The firms are developing strategies to target affluent individual investors interested in
private lending for leveraged buyouts in the region, according to people with direct knowledge of the matter, who asked not to be identified as the information is private. Arcmont Asset Management is also exploring a similar idea, according to some of the people. The moves would follow a similar fund started by Blackstone Inc last year.
Representatives for Apollo and Arcmont declined to comment. Goldman Sachs declined to comment on any specific product.
The $1.4 trillion private credit market is growing at breakneck speed as direct lenders look to
replace bank underwriters on larger and larger leveraged buyout financings. Buffered from volatile markets, private debt boomed as successive rate hikes and economic uncertainty stymied traditional debt options for borrowers last year.
Data provider Preqin expects the asset class to reach $2.3 trillion by 2027.