Private Credit Summit | New York
At the 2025 Private Credit Summit hosted in New York by Dechert, ING and KBW/Stifel, Dechert's Tom Friedmann and KBW/Stifel's Al Laufenberg moderated a panel discussion focused on the growing role of joint ventures and other strategic partnerships in the private credit space. Industry leaders Kyle Brown from Trinity Capital, Chris Condelles from FS Investments, Ted Goldthorpe from BC Partners and Jeff Levin from Morgan Stanley shared perspectives on the structural shifts, strategic motivations and practical challenges associated with these collaborations.
Banks are Back — as Partners, Not Competitors
Over the last two decades, traditional banks have scaled back their lending to smaller operating companies due to regulatory pressures. Recently, however, they are reentering direct lending markets by teaming up with private credit asset managers, which enable the banks to retain client relationships and generate incremental fee income. Asset managers, in turn, seek partnerships with banks to access their extensive origination networks and, in some cases, to obtain growth capital. These partnerships represent a shift toward an integrated direct lending solution for shared clients.
For emerging or non-traditional managers, joint ventures continue to provide critical access to both capital and distribution. The panelists discussed a range of structures, from BDCs and internal funds to sidecar vehicles and retail distribution partnerships, that enable private credit managers to tap into established institutional, insurance and retail channels and limit investments in internal infrastructure.
Insurance Capital and Structuring Opportunities
The panel highlighted the growing involvement of insurance companies in private credit through co-investment arrangements, rated note programs and structured joint ventures. Given their need for yield and limited origination capacity, insurance companies often rely on asset managers to source and manage alternative assets. Whether balance sheet heavy or light, such structured investment vehicles can significantly improve the economics, scalability and governance of forays into alternative asset markets.
Sovereign Wealth Funds as Strategic Anchors
Sovereign wealth funds have made substantial investments in private credit and are increasingly influential in private credit, whether by anchoring new platforms or providing large-scale capital to independent start-ups in exchange for economics, governance rights and/or long-term access to attractive assets. These partnerships can scale an asset management platform rapidly, particularly for emerging managers. However, to succeed, the sovereign funds and platform managers must take time to align their interests and expectations through careful planning.
Alignment is Everything
Differences between transaction-oriented banks and long-hold credit investors can challenge even the best-structured partnerships. The panelists stressed that successful joint ventures require shared underwriting philosophies, a clear understanding of the role of each party and strong, active involvement at the most senior levels of both partners.
Looking Ahead
The panelists agreed that joint ventures and partnerships will remain a central feature of the private credit markets. While challenges exist, the potential benefits of cooperation, enhanced access to origination capabilities, more scalable deal execution and product expansion are significant. As investor preferences shift, well-structured partnerships can offer a durable path to growth. Smaller or newer managers are increasingly using BDCs, joint ventures and other non-traditional partnerships to access capital efficiently, expand distribution and build attractive track records.
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