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UBS-General Atlantic announcement latest in private credit

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General Atlantic to manage investments, UBS to source the

loans

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Private credit booms, forcing banks to seek tie-ups

(Writes through with details on the agreement, sector context)

LONDON, May 6 (Reuters) - Swiss lender UBS Group

and U.S. investment firm General Atlantic have agreed

to make a joint push into the booming market for private credit,

the companies said on Tuesday in the latest deal between a bank

and an alternative asset manager.

Under the partnership, UBS will source and find loans to

make to companies in North America and Western Europe, which

General Atlantic can then offer to investors through its

investment strategies.

General Atlantic will manage a private credit team formed

with executives from its credit arm and UBS Asset Management's

credit investment business, the companies said.

Private credit has boomed in recent years, as

lightly-regulated providers such as asset managers gain market

share from banks facing greater regulatory constraints.

That has forced banks to team up with private credit

managers in partnerships that allow them to hold on to customer

relationships without having to deploy their own capital.

Recent agreements include Deutsche Bank giving

its asset management arm DWS the first look on deals

it originates, while HSBC ( HSBC ) is also preparing to move

into the market, Reuters reported last month.

Private credit refers to the loans typically made to riskier

borrowers or companies looking to clinch mega buyouts with debt.

These loans can be processed quickly and are an important source

of funds for borrowers deemed too vulnerable by conventional

banks.

The companies did not disclose the capital they will commit

to the new partnership.