GIC Pte tapped investment banking firm Evercore Inc. to advise on a potential divestment of private credit fund assets.

Singapore's sovereign wealth fund has been allocating to private credit for years and is now considering selling a portion of those positions as they mature, according to Bloomberg.

Earlier this year, GIC redeemed $250 million from hedge fund Jain Global before the firm opted to return outside capital and run money solely for Millennium Management. 

The fund previously offloaded at least $1 billion in private equity holdings tied to managers, including Blackstone Inc. and Apollo Global Management Inc.

The private-credit secondaries market has been expanding quickly, as a growing subset of investors are utilizing the secondary market to address a broad range of liquidity and portfolio management needs, according to a report from Ares Management.

In 2024, the credit secondaries transacted volume totaled $15 billion. That’s a five times increase from 2019. Ares credits greater awareness and education about the asset class, paired with increased dedicated capital formation, for driving more sellers to transact.

"Recently, we are seeing sellers utilizing the credit secondaries market to access liquidity in order to prudently manage downside risk against an uncertain market backdrop," said Dave Schwartz, Partner and Head of Credit Secondaries at Ares.

"Looking ahead, we anticipate the market to continue to grow meaningfully, with advisors projecting transacted volumes of $28 billion by 2026 and in excess of $50 billion by 2030."

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