Stifel Financial is forming a new direct-lending joint venture with partners including a credit manager owned by Franklin Resources amid a growing wave of such partnerships.
Stifel has agreed to team up with Franklin's Benefit Street Partners and Diameter Capital Partners on the venture, according to people with knowledge of the matter. The focus is on unitranche loans — a blend of senior and subordinated debt, and the parties have begun discussing underwriting and originating loans for borrowers, said one of the people, who requested anonymity to discuss confidential information.
The pact with Stifel doesn't preclude the credit firms from doing deals originated by other banks.
Representatives for Diameter and Benefit Street declined to comment. A Stifel spokesman didn't immediately respond to requests for comment.
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The partnership comes as banks of all kinds strike partnerships with private capital providers to make loans to businesses and consumers amid a boom in private credit. In recent months, Barclays has joiined AGL Credit Management and PNC Financial Services Group has teamed up with TCW Group on new private credit platforms.
St. Louis-based Stifel in June said it had formed a leveraged-lending joint venture named SBLA Private Credit with Lord Abbett that specializes in lending to private equity-owned companies.
