Creditflux: Cresset teams up with ORIX USA’s NXT Capital for direct lending partnership

Creditflux has reported on NXT Capital’s announcement that the middle market direct lending platform formed a strategic investment partnership with Cresset Capital.

“Wealth advisory and private investment firm Cresset Partners has set up a new partnership with ORIX Corporation USA’s middle market lender unit NXT Capital, as both firms attempt to snag a greater slice of the USD 1.7trn global private credit market.

Chicago-based Cresset Partners will provide the capital through its flagship private credit fund Cresset Partners Private Credit Fund, or CPCF, which was launched in April of last year. The firm revealed on Monday that CPCF, which invests primarily in floating rate, senior secured, sponsor-backed loans to US middle market companies, has surpassed USD 500m in assets under management.

The partnership with NXT will allow Cresset to tap into NXT’s origination machine, as it actively invests into some of NXT’s deal flow, according to a representative from Cresset. In exchange, individual investors, including high-net-worth, and family offices on Cresset’s platform will have access to lower middle market US direct lending opportunities.

“The addition of NXT’s origination capabilities strengthens CPCF’s ability to efficiently deploy capital into attractive assets and strengthens our overall portfolio by enhancing diversification,” Bradley Schneider, managing director, head of private credit at Cresset told Creditflux. “NXT is a respected player in the core middle market. We admire NXT for its outstanding track record, team continuity, investment integrity and defensive approach to investing.”

Schneider added that the tie-up with NXT will enhance Cresset’s reach in the world of private credit. The CPCF has delivered annualized distributions of 12.5% to investors in the last two quarters, according to Schneider.”

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