Adams Street Partners Launches Private Credit Platform, Establishes NYC Office

Jan 26 2016 | 8:53pm ET

Global private-equity manager Adams Street Partners has launched a private credit strategy around two veteran hires and established a New York office.

The firm has brought former Oaktree Capital Management executives Bill Sacher and Shahab Rashid aboard to establish and build the platform. The two men will lead the Adams Street’s credit capabilities from a new Manhattan office and formalize the firm’s efforts in the private credit space, focusing on a broad array of opportunities in credit alternatives on a global basis.

The new strategy will be in addition to the dedicated strategies that Adams Street already has for its primary fund of funds, secondary, co-investments, and venture/growth equity efforts, according to a company statement. 

“Adams Street has opportunistically invested in private credit by leveraging our private equity relationships and information flow, and we believe we have now found the best team possible to lead a formal practice,” said Jeff Diehl, managing partner at Adams Street, in the statement. “We see substantial opportunity to generate attractive returns for investors while providing valuable capital to our General Partner sponsors, who have seen banks pull back from middle-market lending.”

“Bill and Shahab see the same opportunity, and we are pleased they are joining Adams Street to build our private credit practice,” Diehl continued. “Not only are they proven credit investors with a successful operating history spanning a number of cycles, they are also a great cultural fit for our partnership.”

Sacher, who assumes the title of partner and head of private credit at Adams Street, has a long history of successful investing, with over 28 years of experience within the leveraged debt markets. Previously, he headed and was the portfolio manager of Oaktree Capital Management’s mezzanine debt funds, a business he co-founded at the firm in late 2000. Beforehand, he was co-head of both the leveraged finance origination team and the high yield capital markets group for J.P. Morgan, and held leadership roles in the high yield businesses at NationsBank and Bear Stearns.

Shahab Rashid, who will operate as partner and co-founder of the private credit team, also joins from Oaktree Capital Management, where he was managing director and deal team head within the Mezzanine debt group. Beforehand, he was a member of the leveraged finance group at Salomon Smith Barney/Citigroup, where he focused mainly on executing high yield and leveraged loan transactions for financial sponsors and corporate clients.

Adams Street Partners commenced its first investment program in 1972, and is credited with establishing the first private equity fund of funds for institutional investors. The firm currently has approximately $27 billion of assets under management across the primary, secondary, venture/growth, private credit and co-investment markets. 

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