Coller Capital has made a significant move in the private equity space by acquiring a $1.6 billion senior direct lending portfolio from American National, a multiline US insurer. This transaction is notable as it represents the largest LP-led credit secondaries deal focused on a senior direct lending portfolio to date.

The acquisition involves Coller Capital taking over limited partner positions in 44 US credit funds that primarily concentrate on senior direct lending. The portfolio is heavily invested in first lien and unitranche loans aimed at mid-market companies. At the time of acquisition, it was well-diversified, encompassing over 3,000 loans and nearly 1,500 borrowers, predominantly based in the United States.

This strategic investment underscores Coller Capital's commitment to expanding its footprint in the direct lending market, particularly in the mid-market segment. The firm aims to leverage the growing demand for credit solutions among mid-sized companies, which often face challenges in accessing traditional financing.

The transaction highlights the increasing trend of LPs engaging in secondary market activities, particularly in credit-focused investments. As the market evolves, such deals are becoming more common, reflecting a shift in how institutional investors approach credit portfolios.

Overall, Coller Capital's acquisition not only marks a milestone in the realm of credit secondaries but also positions the firm to capitalize on the opportunities within the senior direct lending landscape.