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NEW YORK & ZURICH - UBS Group AG (NYSE: UBS) and General Atlantic have announced a strategic partnership to enhance their private credit offerings. The collaboration combines UBS’s advisory and investment banking capabilities with General Atlantic’s expertise in private credit investing. This move aims to provide clients and borrowers with a wider array of direct lending and other credit products.
The partnership builds on a history of collaboration between the two firms. It leverages UBS’s global client relationships and advisory services with General Atlantic’s industry and geographical reach. Bill Ford, CEO of General Atlantic, expressed enthusiasm for the joint venture, citing the complementary cultures and shared goal of scaling a market-leading private credit platform.
Sergio P. Ermotti, CEO of UBS, also remarked on the partnership’s potential to deliver innovative private credit solutions through a combination of the firms’ strengths.
The collaboration will focus on senior secured direct lending to companies in North America and Western Europe, enhancing UBS’s Investment Bank private markets capabilities, especially in the Americas. It will offer financing across mid- and large-cap structures, including corporate and sponsor-backed assets. This strategic move comes as UBS demonstrates strong operational efficiency with a favorable return on assets and stable beta of 0.92, indicating lower market volatility compared to peers.
General Atlantic Credit (GA Credit) will lead investment activities, supported by UBS’s origination capabilities, and manage a private credit team that includes professionals from both GA Credit and UBS Asset Management’s Credit Investments Group (CIG). This will enable CIG to source additional private credit assets for its multi-credit strategies.
The strategic partnership also intends to contribute to the growth of UBS’s Global Banking capital markets platform, increasing its scale and capabilities.
Legal counsel for General Atlantic was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while UBS was advised by Latham & Watkins LLP.
This move represents a significant step for both UBS, a global wealth manager and investment bank, and General Atlantic, a global investor with a history of supporting over 830 companies. The partnership is based on a press release statement issued by the companies. Despite the stock’s year-to-date decline of 14.61%, InvestingPro analysis suggests UBS is currently undervalued, presenting a potential opportunity for investors interested in the financial sector. Get deeper insights and exclusive financial metrics with an InvestingPro subscription.
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