Private credit-focused asset manager Liquidity gets up to $450 million in financing

KeyCorp

19/03/2025 13:56

March 19 (Reuters) - Liquidity, an asset manager focused on private credit investments, said on Wednesday it had secured up to $450 million in a financing deal led by KeyBank KEY.N.

The bank has pledged $75 million in debt upfront, which can be expanded to $250 million, the company said.

Liquidity added that the remaining funds will be secured via equity financing and mezzanine - a hybrid capital instrument that ranks below senior debt in terms of repayment priority.

WHY IT'S IMPORTANT

The deal underscores the strengthening ties between private credit firms and banks, which are vying for a share of the lucrative market that has rapidly expanded in recent years.

CONTEXT

The agreement marks the first time Liquidity has partnered with a U.S.-based bank.

Backed by Japan's MUFG Bank, the asset manager provides credit ranging from $10 million to $150 million to growth-stage tech companies.

KEY QUOTE

"The credit facility with KeyBank is a vote of confidence in Liquidity as we expand our blueprint in North America," Liquidity Co-founder and CEO Ron Daniel said.

 (Reporting by Niket Nishant in Bengaluru; Editing by Shreya Biswas)

 ((Niket.Nishant@thomsonreuters.com;))