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ADIA to Anchor $1B Pemberton NAV Lending Strategy

ADIA to Anchor $1B Pemberton NAV Lending Strategy

Pemberton Asset Management is to close its new $1 billion net asset value (NAV) financing fund after recruiting Abu Dhabi’s sovereign wealth fund as an anchor investor.

A subsidiary of the Abu Dhabi Investment Authority (ADIA) has committed to investing in the NAV Strategic Financing strategy, which will have its first close in the coming weeks.

The NAV Strategic Financing strategy is an extension of Pemberton’s direct lending platform, expanding the company’s product offerings to the private equity buyout community.

The approach is intended to provide GPs with non-dilutive strategic capital alternatives to help them fund their projects, bolt-on acquisitions, and other portfolio company investments.

The anchor investment reflects confidence in Pemberton’s team and deep network across the European GP community, according to Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA. “NAV financing is one of the fastest growing asset classes in private credit and we are confident Pemberton’s new strategy will prove attractive to a broad range of GPs.”

The $993 billion sovereign wealth fund’s allocation to credit strategies ranges from 2% to 7%. In April, ADIA also provided anchor funding for AGL Credit Management, a new private credit platform that specializes in directly originated senior secured loans to large corporate borrowers. In March, ADIA committed to the ninth vintage of the Cheyne Real Estate Credit Holdings program.

Pemberton’s managing partner, Symon Drake-Brockman, emphasized the firm’s delight about the cooperation with ADIA, saying, “NAV financing will become a core fund financing tool, and with ADIA’s support, we look forward to offering this innovative solution to our clients.”

Pemberton, with $22 billion in assets, closed its Strategic Credit Fund III in March, to invest $2.48 billion in sponsor-led deals across non-cyclical businesses.

Pemberton has also announced the first close of its inaugural ERISA-compliant offering, the European Alternative Credit Fund, with $275 million to invest in first lien financings, as well as the launch of its first European collateralized loan obligation, Indigo Credit Management I, with $378 million to target investments in publicly rated, liquid, broadly syndicated leveraged loans used for sponsor-driven or corporate M&A financing.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.