Generali Investments launches Private Credit Secondaries Fund with Partners Group

The Fund will leverage Generali Asset Management's competitive advantages in origination and underwriting, supported by its track record in fund investing, and benefit from Partners Group’s institutional knowledge and investment expertise across private credit markets and secondaries transactions. In addition to doubling origination capacity, the partnership will also mean increased underwriting and execution capabilities, enhanced client reporting support, and expanded fundraising efforts.

The strategic collaboration aims to swiftly capture market share in the rapidly growing private credit secondaries space. The rise in total private credit assets under management (“AuM”), which is estimated at approximately $1.6 trillion[1], is expected to underpin future secondaries transaction volumes. Typical secondaries transactions include LP-led secondaries, where LPs seek to sell stakes in funds, and GP-led secondaries, which involve GPs moving portfolio assets into a new vehicle.

Marco Zanuso, Global Head of Sales & Marketing, Generali Investments:

"Over the past five years, we have observed consistent growth in the private credit sector, and our capabilities within this segment have advanced significantly. We have strategically positioned ourselves with a diverse array of investment strategies to assist our clients in achieving their direct and indirect private credit investment goals. This focus on alternative asset classes aligns with our broader investment strategy to capitalize on illiquidity premiums and deliver solid risk-adjusted returns to investors. Given the evident imbalance between supply and demand in the secondary market, we are highly enthusiastic about this new fund in collaboration with Partners Group. This partnership presents new opportunities in a rapidly expanding and promising market."

Marco Busca, Head of Indirect Private Debt, Generali Asset Management (part of Generali Investments):

"Together with Partners Group, we are able to offer a new strategy that addresses diverse investment needs, leveraging the inherent advantages of private credit secondaries. They present similar opportunities with multiple benefits: superior returns compared to primary investments, rapid yield generation with limited duration and expedited deployment, known as J-curve mitigation. Investors gain immediate exposure and cash flow, as secondary buyers acquire an existing, mature portfolio."

Enrico Pinelli, Head of Client Solutions Italy, Partners Group:

"Generali and Partners Group have a long-standing strategic relationship and successful investment collaboration, and we are very excited to be working with Generali Investments in this new partnership. Through this strategic collaboration, our firms will bring multiple benefits in terms of originating and underwriting private credit secondaries investments, as well as significant synergies in distribution."

Henri Lusa, Managing Director, Private Credit, Partners Group:

"The private credit secondaries market is gaining momentum, reflecting the rapid expansion of the private credit asset class in the last decade. As we have seen in private equity and infrastructure, a maturing asset class often leads to a shift amongst LPs from building up allocations towards managing exposure within portfolios. We expect a growing number of LPs will use the secondary market as a portfolio management tool for their private credit investments, particularly as the market becomes deeper. At Partners Group, our institutional knowledge of secondaries, built over two decades in the private equity space, and large direct lending platform position us well as an investment advisor in this new partnership."