Stifel & Lord Abbett Form Leveraged Lending Joint Venture
On June 12, 2024, Stifel Financial Corp. (NYSE: SF) and Lord Abbett announced the formation of SBLA Private Credit, a new leveraged lending joint venture. SBLA Private Credit aims to enhance market presence, origination, and scale by focusing on new and existing loans to small and mid-sized portfolio companies. This collaboration combines Stifel's robust direct lending capabilities and Lord Abbett's leveraged credit presence to offer a comprehensive suite of private credit solutions. The venture will be managed by senior representatives from both firms, reflecting their strong and aligned credit cultures. Both firms have already co-invested in multiple loans, highlighting their commitment to this strategic partnership.
- Formation of SBLA Private Credit enhances market presence and origination depth.
- Combines strengths of Stifel's direct lending and Lord Abbett's leveraged credit.
- SBLA Private Credit focuses on new and existing loans to small and mid-sized companies.
- Joint venture managed by senior representatives from both firms.
- Both firms have already co-invested in multiple loans.
- Potential for increased scale and differentiated loan origination capabilities.
- No specific financial figures or commitments were disclosed.
- Potential risks associated with increased exposure to leveraged lending.
- Market conditions and economic downturns could impact the success of the joint venture.
Insights
The joint venture between Stifel Financial Corp. and Lord Abbett to form SBLA Private Credit is a significant move in the financial services sector. This partnership expands both firms' capabilities in the middle-market lending segment, which is a critical sector for economic growth as it supports small to mid-sized businesses. For retail investors, this can signal potential for increased revenue streams and market share for both companies.
Stifel's expertise in direct lending coupled with Lord Abbett's strong leverage credit presence provides a substantial synergy. This could result in a more resilient and diverse loan portfolio, reducing risk exposure. Investors might expect
From a financial perspective, this joint venture could lead to improved earnings for both companies, benefiting their bottom lines. However, it's important to monitor how these firms manage this integration and any associated costs, which could impact short-term profitability.
In the context of market positioning, SBLA Private Credit stands to enhance its competitive edge by leveraging the established reputations of both Stifel and Lord Abbett. The middle-market lending space is highly competitive and the ability to offer larger credit facilities can attract high-quality clients, potentially leading to increased market share. Retail investors could interpret this as a positive move towards market leadership.
It's also important to consider the market conditions for private credit. With an increasing demand for non-bank lending solutions, SBLA Private Credit might capitalize on this trend. However, this also means navigating through regulatory environments and market cycles that could impact the lending landscape.
Retail investors should be aware of the potential for scalability and how this joint venture might evolve. While it offers promising growth prospects, market conditions and regulatory changes could pose challenges that need meticulous management.
‘SBLA Private Credit’ Brings Together Leading Middle-Market Franchises To Deepen Market Presence, Origination Depth & Scale
ST. LOUIS and JERSEY CITY, N.J., June 12, 2024 (GLOBE NEWSWIRE) -- Stifel Financial Corp. (NYSE: SF) and Lord Abbett, LLC, today announced the formation of a substantial leveraged lending joint venture, SBLA Private Credit. SBLA Private Credit will focus on both new issue and existing loans to small and mid-sized portfolio companies of financial sponsors and compliments the existing capabilities of both firms.
SBLA Private Credit brings together two of the industry’s most established brands, with in-depth coverage across the middle market and reputations for strategic growth and disciplined risk management. Coupling the strength of Stifel’s full-service platform and entrenched direct lending capabilities with Lord Abbett’s leveraged credit presence and significant capital base, SBLA Private Credit is uniquely positioned for success in today’s origination market.
“Stifel continues to forge strategic partnerships that allow the firm to meet the different needs of our diverse client base and offer a full suite of competitive private credit solutions,” said Ron Kruszewski, Chairman and CEO of Stifel. “By partnering with Lord Abbett, we are able to expand Stifel Bank’s capacity to lead larger credit facilities, and better support the growth of our clients.”
“It is a privilege to work with a world-class partner like Stifel,” said Douglas Sieg, CEO & Managing Partner of Lord Abbett. “This strategic partnership will deepen our market presence, expand our origination, and increase our scale, while differentiating and diversifying our loan origination capability and private credit offerings.”
SBLA Private Credit will be equally managed by senior representatives from Stifel Bank and Lord Abbett. As a demonstration of both firms’ strong and aligned credit cultures, Stifel and Lord Abbett have already co-invested across multiple loans.
Lord Abbett was founded in 1929 and is an independent, privately held asset manager and one of the oldest money management firms in the U.S. Lord Abbett manages assets across a full range of U.S. mutual funds, institutional, and separately managed accounts for clients around the world. In addition, Lord Abbett has been managing leveraged credit since 1971 and recently launched a private credit business focused on middle market corporate lending.
Founded in 1890, Stifel is an international full-service investment bank based in the United States, with extensive capabilities across products and industry sectors. Stifel operates a substantial fixed income platform, including distribution, research, and capital markets for leveraged loans and high yield. In addition, Stifel is one of the largest equity underwriters and equity research providers in the United States and acts as a leading M&A advisor in both public and private transactions.
KBW, a Stifel Company, advised Stifel. Bryan Cave LLP and Dechert LLP provided legal and regulatory advice to Stifel and Lord Abbett, respectively.
Stifel Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.
Lord Abbett Company Information
Lord Abbett & Co. LLC is a privately held, global asset management firm founded in 1929. From the day we first opened for business, our approach to investing for and serving our clients has been rooted in our core beliefs: Our clients always come first, our firm maintains a singular focus on the management of money, and our perspective is shaped by our independent thinking. These beliefs and our experience have empowered us to serve generations of clients, navigate changing markets, and earn the privilege of managing
Lord Abbett has augmented its long-standing
Stifel Media Contact
Neil Shapiro, +1 (212) 271-3447
shapiron@stifel.com
Stifel Investor Relations Contact
Joel Jeffrey, +1 (212) 271-3610
investorrelations@stifel.com
Lord Abbett Media Contact
Jim Sansevero, +1 (201) 827-2774
jsansevero@lordabbett.com
FAQ
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