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Barclays private loan partner has struggled to attract fresh investments almost a year after notifying a link to the bank, Damping hopes the deal can provide British lender with fire power to compete in a $ 1.6tn market.
AGL credit management revealed its private credit platform last April with the benefit of an anchor investment of $ 1 billion by the ABU Dhabi (Adia) Investment Authority and an exclusive agreement with Barclays. But since then she has fought to attract other investors in her fund.
Excluding Adia’s engagement, which has supported New York -based AGL since its inception in 2019, the fund had withdrawn less than $ 70m of capital from other investors until the first quarter, registrations in the US Insurance and Exchange Commission.
The process of collecting funds was described as “slow” by two people with knowledge of efforts. One of the people said it was “difficult to make funding” because AGL “does not have a record in private loans”.
When departed, the partnership was regarded as a way for Barclays to affect the growing private loan market, where investment funds write loans that traditionally withdraw from banks, and both firms agreed to a five-year cooperation agreement as part of the agreement.
Barclays did not make its own funds, but AGL received a right of first refusal to bank agreements. It can also invest in transactions signed by other banks.
Taylor Wright, co-leader of Barclays investment banks, said at the time that there was a “strong desire” from bank customers to work with a single partner who could provide the full range of financing solutions … and strong AGL investment skills and trace records make them an ideal associate. ”
However, in his annual report, AGL told investors that his limited record was a risk factor, and noted that many of his competitors “are more experienced, fundamentally greater and have significantly greater financial, technical and marketing resources than us.” Fund listed investments worth $ 473 million at the end of last year.
Difficulties in collecting funds are a symptom of slowdown in private markets, which has reduced the ability of large investors to make new funds.
The collection of private loan funds fell for a third consecutive year in 2024, with the Lion of New Commitments going to the players established, according to Prak data.
Two people informed about the partnership rejected the suggestion that the fundraising was slow, with one noting that Barclays and AGL had not set any difficult objectives for efforts. A second person said AGL was in conversation with potential investors who were still taking care of the fund.
“We are very pleased with the high level of interest in the new AGL private loan platform with all investments in accordance with our differentiated strategy since the beginning of October,” AGL said in a statement.
“Barclays gives a full range of strategic solutions and financing for clients, including direct lending,” Bank said. “We are satisfied with the way partnership with AGL is progressing and we look forward to continuing to improve our skills in this space.”
The strength of traditional bond and loan markets has limited any consequences for the bank from the challenges of fundraising. Banks, including Barclays, have been comfortable to engage in new purchase funding themselves as the markets have returned.
