UBS seeks General Atlantic for Private Lending Alliance

UBS Group AG and General Atlantic are in advanced talks to form a strategic partnership to enter the $1.6 trillion private credit market, driven by the rising demand for direct lending and flexible financing options.

An official announcement could be made as soon as the coming week.

Partnership Details

• The partnership is expected to focus on originating large loans-potentially up to $500 million each-for borrowers in North America and Europe with substantial earnings (specifically, those with EBITDA of $50 million or more).

• Under the proposed arrangement, UBS’s investment bank would originate the loans, while General Atlantic’s credit arm (GA Credit) would receive preferred access or a “first-look” at these deals.

• GA Credit, led by Tripp Smith (a co-founder of what is now Blackstone Credit), currently manages $4.8 billion in assets.

Strategic Context

• The talks reflect a broader trend in global finance, with major banks seeking partnerships with alternative asset managers to maintain relevance in the private credit space.

• Other recent examples include JPMorgan Chase expanding its direct lending by $50 billion, Wells Fargo teaming up with Centerbridge Partners for a $5 billion fund, and European banks like Societe Generale and Barclays forming similar alliances.

• UBS has been revising its approach to private-market asset sales and is increasingly collaborating with alternative asset managers, including buyout funds, to diversify its offerings and boost its leveraged finance solutions, particularly in the Americas.

This partnership highlights the rising significance of private credit for large corporations amid constraints on traditional bank lending. UBS and General Atlantic aim to leverage the strong demand for direct lending and strengthen their positions in the credit market.

Why Are Borrowers Choosing Private Credit?

It’s simple: speed, flexibility, and real-world understanding. When a business needs capital for an acquisition or to seize a growth opportunity, they can’t wait months for a bank’s risk committee to sign off. Private credit lenders move in weeks, sometimes days. We structure deals that fit the business, not a regulatory checkbox.

Banks talk about “predictable financing costs,” but that’s missing the point. What borrowers want is certainty and agility. They want a lender who actually understands their business model and can tailor a solution-something banks, hamstrung by post-2008 regulations, just can’t deliver.

UBS: Late to the Party

Let’s be honest: GA Credit’s $4.8 billion AUM is a rounding error compared to the likes of Ares, Apollo, or Blackstone, who each manage hundreds of billions in private credit. This partnership is UBS’s attempt to avoid irrelevance as the world’s largest companies increasingly bypass banks for their financing needs.

UBS is scrambling to get a piece of the action as private credit funds eat their lunch. They see the writing on the wall: if they don’t adapt, they’ll be left behind-just another legacy institution watching the market move on without them.

1-Minute Video: Cobalt API Automates 50-State Compliance in Minutes

Pizza Inc. in one state, Pizza LLC in another. Multiply by hundreds of clients. It's a data management disaster waiting to happen.

Cobalt Intelligence's API is the disaster prevention plan you need.

Automatically check good standing, pull missing details, and reduce errors significantly.

Join the league of businesses already trusting us!

Your team's expertise + our API = a winning combination.

Let's prevent the disaster together.

Schedule a FREE demo call

Headlines You Don’t Want to Miss

Bancorp (TBBK) Increases Provision For Consumer Fintech Loan Credit Losses

Bancorp (TBBK) significantly increased its provision for credit losses on consumer fintech loans from $19.6 million to $30.7 million in its amended annual report, also disclosing material weaknesses in internal controls and that its financial statements could not be relied upon due to lack of auditor approval. This development has triggered a securities class action lawsuit alleging that the company misrepresented loan portfolio risks and under-reserved for potential losses, further escalating investor concerns.

Cash Advance App Klover Hit With Class Action Lawsuit Over Predatory Lending

Klover, a cash advance app, is facing multiple class action lawsuits in Pennsylvania alleging it disguises payday loans as "zero-interest" advances while charging hidden fees and tips that result in annual percentage rates (APRs) exceeding 300%-and sometimes as high as 1,000%-far above the state's legal limit of 6%. Plaintiffs claim these practices trap consumers in cycles of debt, violate state lending laws, and mislead borrowers by failing to disclose the true cost of borrowing, with Klover arguing its advances are not loans and thus not subject to lending regulations.

Blackstone replaces Citi as lender in £153m refinancing

Blackstone has replaced Citi as the lender in a £153 million refinancing deal, signaling a shift in the financing structure of a significant UK real estate portfolio. This move reflects Blackstone's ongoing strategy to expand its credit and lending activities in the European market, particularly within logistics and infrastructure assets.