(Bloomberg) -- Fidelity International has halted its European direct lending activities and let go members of its private markets team, according to a spokesperson for the firm.

The investing giant, which had $817 billion in assets under management as of March 31, has decided to wind down its private credit operations after Andrew McCaffery, the firm’s co-chief investment officer for fixed income, multi asset and private assets, stepped down. 

Alternative Credit Investor first reported on Fidelity’s plans. Andrew Wells, president of Fidelity Canada, will oversee fixed income, multi asset and private assets at the firm for an interim period, according to a statement.  

The firm is expected to continue to support its collateralized loan obligation and real estate businesses, the statement said. It will continue to invest in direct lending opportunities, but will do so through third parties rather than running its own funds. 

Fidelity launched its inaugural private credit fund in October 2023. At the time, the firm’s private lending team consisted of nearly 20 people. Since 2021, Fidelity has hired about 70 staff to build out its wider private markets business.

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