Nuveen partners with Hunter Point and Temasek for private credit push

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(Reuters) -Investment manager Nuveen’s private debt arm has partnered with Hunter Point Capital and Temasek, the company said on Wednesday, as it furthers its push into the fast-growing slice of corporate financing market.

Under the agreement, Hunter Point and Temasek will make minority investments in Nuveen Private Capital. Singapore-based Temasek will also provide long-term capital commitments to Nuveen’s new and existing strategies.

Persistently high market volatility and interest rates have constrained the lending capacities of banks, creating a funding gap that is now being filled by private credit providers.

These financial firms provide more flexible loan terms, repayment schedules and collateral requirements than traditional entities like banks.

Nuveen Private Capital said its investment strategy, leadership or operations will remain unaffected after the transaction, with its parent firm continuing to maintain majority ownership.

With $87 billion under management today, Nuveen Private Capital finances deals across the U.S. and Europe via its Churchill and Arcmont Asset Management arms.

Nuveen has some $1.3 trillion under management and is a unit of New York-based Teachers Insurance and Annuity Association, one of the largest and oldest U.S. retirement financial services organizations. The Chicago-based firm had acquired a controlling stake in Arcmont Asset Management in 2022 in a deal worth over $1 billion.

Hunter Point is a private equity firm launched by Bennett Goodman, who co-founded Blackstone’s credit arm GSO Capital Partners, now known as Blackstone Credit.

BofA Securities served as financial advisor to Nuveen.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Leroy Leo)