Raymond James Forays Into the Private Credit Business

Raymond James RJF is set to enter into the lucrative private credit business. Through its Investment Banking ("IB") division, the company has formed a strategic collaboration with Eldridge Industries and Raymond James Bank. Spearheading this expansion is Omer Masud, a seasoned credit industry expert appointed as the head of sponsor finance origination.
The newly formed Raymond James Private Credit aims to cater private credit solutions to portfolio companies of private equity firms. Leveraging Raymond James' robust IB platform, Raymond James Bank's lending prowess and Eldridge Industries' asset management expertise, the venture is poised to strengthen relationships with leading PE firms, particularly in key sectors such as consumer, diversified industrials, healthcare and technology & services.
Jim Bunn, the president of Global Equities and Investment Banking at RJF, emphasized the significance of this move in solidifying ties with the private equity community, underlining the firm's commitment to enhancing PE relationships. Steve Raney, the chairman and CEO of Raymond James Bank, highlighted the institution's history of offering comprehensive lending programs and expressed enthusiasm about extending these capabilities further in collaboration with Eldridge Industries.
Todd Boehly, the co-founder and CEO of Eldridge Industries, echoed the sentiment, affirming private credit as a premier asset class and expressing pride in supporting Raymond James' foray into this domain.
With Eldridge's substantial assets under management and Raymond James' established market presence, the collaboration positions both entities for significant growth and underscores their shared commitment to delivering tailored financial solutions to PE clients.
Over the past year, shares of this Zacks Rank #3 (Hold) company have jumped 45.2%, outperforming the industry's growth of 36.8%.

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As Raymond James and Eldridge Industries embark on this venture, they join a burgeoning landscape of financial institutions tapping into the vast potential of the private credit market. Several global firms like Goldman GS and Barclays BCS are also venturing into this space, forming partnerships with investment firms to capitalize on the growing demand for alternative financing options.
Last month, BCS made a push into the private credit market. The company, along with AGL Credit Management, announced a cooperation agreement and the launch of a private credit investment platform, AGL Private Credit. Likewise, this February, GS entered into a partnership with Mubadala Investment, an Abu Dhabi sovereign wealth fund, to invest $1 billion in private credit deals in multiple Asia-Pacific markets.

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