Liberty Mutual Investments, Elda River partner on $500m mid-market credit

Liberty Mutual Investments and Elda River Capital Management have partnered to deploy $500m (£377.2m) into credit investments, Alternative Credit Investor reported. The arrangement expands the senior credit financing Elda River can offer middle-market borrowers.

The arrangement builds on an existing relationship and targets Elda River's core sectors, which the companies described as including energy and infrastructure, power and renewables, and energy efficiency. Adam Daley, managing partner and co-founder of Elda River, said the firm would launch a "highly flexible credit strategy" with LMI and use both firms' capabilities to pursue mid-market opportunities in those sectors.

John Kim, head of alternative credit at LMI, said the commitment "reinforces the breadth and strength" of LMI's platform in providing a diverse array of credit solutions "side-by-side with our strategic partners."

The commitment comes in the same month as this publication's report that LMI holds an option to deploy $750m with Orion Infrastructure Capital. LMI and Orion have jointly committed $240m so far to the Credit Income Strategy inside Orion's existing infrastructure credit business. Both arrangements direct capital held on behalf of Liberty Mutual Group to specialist managers lending into energy and infrastructure, though the Orion structure is an option and the Elda River arrangement is a $500m partnership.

Elda River, described as a real assets investment firm, has committed $7.5bn to more than 70 private investments. LMI says it has invested more than $130bn across its platform on behalf of Liberty Mutual Group.