UBS, General Atlantic in Talks for $1.6 Trillion Private Credit Partnership

UBS Group is in advanced negotiations with General Atlantic to form a strategic partnership aimed at entering the $1.6 trillion private credit market, with a formal announcement possible soon. The alliance would see UBS's investment bank originate large loans—potentially up to $500 million each—for North American and European borrowers with significant earnings, while General Atlantic’s credit arm would receive preferred access to these deals. This move reflects a broader trend in the financial sector, where traditional banks are seeking partnerships with private credit funds to offer more flexible financing options. The collaboration is part of UBS’s ongoing efforts to expand its global banking and leveraged finance business, particularly in the Americas. Investor sentiment has been positive, with UBS shares rising in response to news of the talks. Analysts see growth potential for UBS but currently recommend a cautious approach to the stock.