Andalusian, Carlyle Form $200M JV to Target Mid-Market Private Credit
Andalusian Credit Partners has formed a $200 million joint venture with Carlyle Global Credit Investment Management and affiliates to invest in middle-market loans and other cash-flow-generating private credit assets, underscoring continued institutional demand for structured direct lending exposure.
The vehicle is anchored by Andalusian Credit Company, a business development company managed by Andalusian that focuses on sponsor-backed and non-sponsored borrowers across sectors including sports, media and entertainment, and financial and specialty services. The structure reflects a hybrid approach combining equity capital with rated debt tranches to enhance scale and flexibility.
Under the agreement, the partners have committed up to $60 million in equity. Andalusian Credit Company will contribute up to $52.5 million in Class B interests, largely through an in-kind portfolio of loans, while Carlyle has committed up to $7.5 million in Class A interests. Andalusian’s ownership stake in the venture is capped at 87.5%.
Alongside the equity, the joint venture issued four classes of delayed-draw notes rated by Morningstar DBRS to Carlyle. The notes include $115 million of Class A commitments, $8 million of Class B, $12 million of Class C and $5 million of Class D, creating a layered capital structure designed to support incremental loan origination.