Wells Fargo and Centerbridge Partners are entering into a strategic relationship that will focus on direct lending to non-sponsor North American middle market companies. To meet the alternative credit needs of this segment, Centerbridge will launch Overland Advisors to manage a newly formed business development company (BDC) that will be primarily focused on making senior secured loans.
The strategic relationship includes differentiated origination sourcing from Wells Fargo’s extensive middle market customer base, as well as an equity investment from Wells Fargo, while Overland will leverage Centerbridge’s recognized leadership as a private and alternative credit investor, with a seasoned investment team that has decades of experience creating innovative solutions and underwriting credit investments. Overland Advisors will be controlled by Centerbridge and Wells Fargo will be a minority investor.
Overland Advisors is targeting a minimum of $5 billion in investible capital, including $2.5 billion in equity commitments for this strategy. Anchor investors, including wholly owned subsidiaries of the Abu Dhabi Investment Authority (ADIA) and British Columbia Investment Management Corporation (BCI), have committed to provide nearly $2 billion in initial equity commitments.
The S&C team advising Wells Fargo includes Mitch Eitel, Bill Farrar, Eric Diamond and Nati Kim.
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