A private credit partner Barclays struggles to raise new funds

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Barclays’ private credit partner struggled to attract fresh investments almost a year after it announced a connection with the bank, Damping hopes the deal can give British firing power to fight the $ 1.6 tn market.

AGL Management Credit submitted its private credit platform in April last April using investment at $ 1 billion. In Abu -Dabia (ADIA) and an exclusive agreement with Bar. But since then he has struggled to attract other investors to his fund.

With the exception of Adia’s commitments, which has supported the New York AGL since launching in 2019, the fund has raised less than $ 70 million from other investors in the first quarter, applying for US Securities Commission and.

The fundraising process was described as “slow” by two people who know the effort. One of the people said it was “difficult to collect” because AGL “I don’t have the results of a private loan.”

When it started, the partnership was spreading as a way to make Barclays a growing market for private credit loans where investment funds write loans that traditionally deducted banks, and two firms agreed to a five -year cooperation agreement.

Barclays did not accomplish its own funds, but AGL was entitled to the first refusal for the bank’s transaction. It can also invest in transactions signed by other banks.

Taylor Wright, co -chairman of Barclays “Investment Banking Business, said the bank’s clients have a” strong desire “to work with a single partner who can provide a full range of financing solutions … and strong AGL investment opportunities and results make them perfect employees.”

However, in his annual AGL report, he told investors that his limited recording was a risk factor and noted that many of his competitors are “more experienced, much greater and have much greater financial, technical and marketing resources than we”. At the end of last year, the fund listed the investment worth $ 473 million.

Difficulties in raising funds are one of the slowdown symptoms in private markets, which has reduced the ability of large investors to make new funds.

According to Preqin, according to the third consecutive year, he fell for the third consecutive year in 2024.

Two people informed about the partnership, rejected the assumption that the fundraiser was slow, and one noted that Barclays and AGL had no hard goals for efforts. The second person said AGL had a conversation with potential investors who were still attentive to the fund.

“We are very pleased with the high level of interest in the new private AGL credit platform with all investments in accordance with our differentiated strategy after launching October,” AGL said.

“Barclays provides customers a full range of strategic and financial solutions, including direct lending,” the bank said. “We are satisfied with how the partnership with AGL progresses, and we look forward to further expanding our capabilities in this space.”

The power of traditional bond markets and loans restricted any cases for the bank from fundraising problems. Banks, including Barclays, have been comfortable with new ransom financing because the markets bounced.