UBS and General Atlantic Credit: A New Paradigm in Private Credit Investing

The $1.7 trillion private credit market is witnessing a seismic shift as UBS Group and General Atlantic Credit formalize their strategic partnership, announced in May 2025. This collaboration merges UBS’s global advisory prowess with GA Credit’s deep private credit expertise, positioning both firms to dominate a sector increasingly vital for corporate financing. The partnership is a masterstroke in an era where banks and asset managers are redefining their roles to capitalize on regulatory constraints and growing demand for non-traditional lending solutions.

The Strategic Alchemy of Two Giants

UBS, with $6.2 trillion in assets under management, brings unmatched origination capabilities through its investment banking arm. GA Credit, managing $4.8 billion in private credit, contributes its industry-specific expertise and a track record of delivering tailored financing solutions. The partnership focuses on senior secured loans for mid- and large-cap corporations and sponsor-backed entities in North America and Western Europe—a region where UBS’s client network is particularly robust.

The collaboration’s structure is equally compelling: GA Credit leads investment decisions, while UBS’s Credit Investments Group (CIG) sources deals and integrates them into its multi-credit strategies. This division of labor ensures efficiency, with CIG benefiting from proprietary deal flow and GA Credit expanding its origination reach beyond its existing Atlantic Park strategy.

UBS’s stock has risen 15% since the partnership’s announcement, reflecting investor confidence in its private markets ambitions. Meanwhile, General Atlantic’s parent firm (though private) has seen its assets under management grow by 12% annually over the past five years, underscoring the scalability of its model.

A Market in Flux: Why This Partnership Matters

The private credit boom is no accident. Post-2008 regulatory reforms have constrained banks’ ability to hold risky corporate debt on their balance sheets, pushing corporations toward alternative lenders. This shift has fueled a 25% compound annual growth rate in the private credit market since 2015. UBS and GA Credit’s alliance directly addresses this demand, offering clients access to capital that traditional banks can no longer efficiently provide.

The partnership also leverages GA Credit’s focus on mid-market borrowers—a segment underserved by large banks. For instance, in 2024, U.S. middle-market companies accounted for 40% of private credit issuance, yet only 17% of banks’ total corporate lending. This gap presents a $300 billion opportunity annually, according to McKinsey & Company.

Competitive Landscape and Risks

UBS and GA Credit are not alone in this race. BlackRock’s $12 billion acquisition of HPS Investment Partners and Blue Owl’s purchase of Atalaya Capital Management highlight the industry’s consolidation trend. However, UBS’s institutional strength and GA’s niche expertise give them a unique edge.

Risks remain, however. Interest rate volatility and economic downturns could strain borrowers’ ability to repay loans, particularly in leveraged buyouts. Yet the partnership’s focus on senior secured loans—a safer tier of the capital structure—mitigates this exposure.

Conclusion: A Blueprint for the Future of Finance

The UBS-GA Credit partnership is a harbinger of things to come. By combining UBS’s origination scale with GA’s credit expertise, they are building a platform that could capture a significant slice of the $1.7 trillion private credit market. Key data points reinforce this outlook:

• Market Momentum: The private credit sector is projected to exceed $3 trillion by 2028 (Preqin, 2024).
• Strategic Synergy: UBS’s $6.2 trillion in assets provide unparalleled deal flow, while GA Credit’s $4.8 billion under management signals a proven execution track record.
• Competitive Differentiation: Their focus on senior secured loans—a segment with a 1.2% default rate historically—positions them as a low-risk, high-return player.

For investors, this partnership exemplifies the power of strategic alliances in a fragmented market. As traditional banking models evolve, UBS and GA Credit are rewriting the playbook—one deal at a time.