(Bloomberg) -- Armen, a European investment firm focused on buying stakes in private equity houses, is buying 16% of Chorus Capital in its first investment in the alternative credit space.
Chorus Capital’s senior management will invest a significant part of the proceeds into the firm’s next fund, according to a statement seen by Bloomberg News. Some will be used to boost growth in in risk-sharing transactions, which provide default protection for loan portfolios.
The global market for significant risk transfers has reached a record level as European lenders use such instruments more to boost profitability ratios, according to Chorus Capital. Global issuance of SRTs reached about $9.5 billion in the first half of 2024, compared with about $7.2 billion in the same period of both the previous two years, the firm said in July.
Chorus Capital was founded in 2011 by former Goldman Sachs Group Inc. banker Gilles Marchesin.
The transaction marks Armen’s third purchase since it was founded in 2022. Last year, it bought a stake in Rgreen Invest, which focuses on energy transition infrastructure project investment. It also acquired a minority stake in Private Corner in France.
Lincoln International advised Chorus Capital on the deal, while Armen worked with BNP Paribas SA and EY.
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