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.

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.