Eldridge, a company managing over $70 billion in assets, in partnership with Carlyle AlpInvest, a global private equity investor with $102 billion in assets under management, has completed the first close of Eldridge Diversified Credit Fund I, marking the launch of Eldridge's diversified credit platform. This new initiative capitalizes on Eldridge’s corporate credit acumen alongside its established asset-based equipment origination platform, aiming to deliver a multifaceted credit investment solution.
The establishment of EDCF I was realized through a credit secondary solution approach, in which the fund acquired a portfolio of loans and leases originating from Eldridge and its affiliated entities. This move was facilitated by commitments from a range of prominent institutional investors worldwide, providing a diverse and solid capital base for the fund.
Supporting the structure and growth of this platform, BNP Paribas extended debt financing amounting to as much as approximately $1.5 billion. This significant capital infusion is intended to enhance the platform's capacity to navigate credit markets flexibly and efficiently.
Mike Hacker, partner at Carlyle AlpInvest, expressed optimism regarding the partnership, highlighting the unique capability of Eldridge’s diversified credit platform to combine corporate credit capabilities with a leading asset-based equipment origination franchise. He indicated that this combination offers a versatile toolkit, enabling more adaptive market strategies amidst varying credit environments.
From Eldridge's perspective, Nicholas Sandler, co-president and co-head of diversified credit, articulated that the prime objective of the platform is to respond to the changing demands of institutional borrowers. Concurrently, the platform is designed to generate compelling returns by leveraging a differentiated multi-strategy credit approach, emphasizing flexibility and breadth in investment tactics.
The fund transaction was guided by experienced financial and legal advisers. PJT Partners took the lead as the primary financial adviser, with Jefferies serving as co-lead financial adviser. Legal counsel for Eldridge was provided by Kirkland & Ellis LLP, while legal support for Carlyle AlpInvest was undertaken by Ropes & Gray LLP.
Eldridge Capital Management's investment focus is structured around four primary strategies: diversified credit, GP solutions, real estate credit, and sports and entertainment. This diversification reflects its broader asset management framework and underscores its ability to address various market segments.
Carlyle AlpInvest's role as a global private equity investor with an extensive investor base, exceeding 700 participants as of September 30, 2025, positions it well to contribute both capital and strategic guidance to Eldridge’s emerging credit platform.
The successful closure of EDCF I represents a foundational step in Eldridge’s ambitions to carve a distinct presence in the diversified credit investment landscape, aligning institutional capital with innovative credit investment strategies capable of adjusting to evolving market conditions and borrower requirements.
This collaboration underscores the growing interest from institutional investors in credit platforms that integrate multiple credit disciplines, offering expanded opportunities to harness diverse asset classes within the credit market.