Canada-based CPPIB Credit Investments (CPPIB Credit) has inked an agreement with US-based private equity firms Stone Point Capital and KKR & Co, to act as a joint venture partner and investor in MerchCap Solutions.
CPPIB Credit is looking to invest up to $2bn initially in the middle market and non-traditional corporate credit opportunities sourced through this platform.
CPPIB private debt head Mark Jenkins will join the board of directors of the company as well as its strategic development and capital allocation committees, according to the agreement.
KKR’s capital markets employees will continue to manage the day-to-day origination, execution and underwriting activities of the company.
CPPIB Credit said that it will commit further $50m of equity to MCS, apart from the $300m of capital previously committed by Stone Point and KKR, to support its business needs.
KKR-SPC Merchant Advisors delivers principal and agency-based capital markets services to sponsor-backed and corporate mid-market companies as well as principal investments to support its client needs.
Stone Point Capital serves as the manager of the Trident Funds, which have raised over $9bn in committed capital to make investments in lending, banking, insurance, asset management and other financial services companies.