Stifel & Lord Abbett Form Leveraged Lending Joint Venture

Joint Venture Overview - Stifel Financial Corp and Lord Abbett LLC announced the formation of SBLA Private Credit, a leveraged lending joint venture focusing on new and existing loans for small and mid-sized portfolio companies of financial sponsors [1] - SBLA Private Credit combines Stifel's full-service platform and direct lending capabilities with Lord Abbett's leveraged credit presence and significant capital base, positioning it uniquely in the origination market [9] - The joint venture will be equally managed by senior representatives from both Stifel Bank and Lord Abbett, demonstrating their aligned credit cultures [10] Company Profiles Stifel Financial Corp - Stifel is an international full-service investment bank founded in 1890 with extensive capabilities across products and industry sectors [2] - The company operates a substantial fixed income platform, including distribution, research, and capital markets for leveraged loans and high yield [2] - Stifel is one of the largest equity underwriters and equity research providers in the United States and a leading M&A advisor in both public and private transactions [2] - Stifel's broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services globally [3] Lord Abbett - Lord Abbett is an independent, privately held asset manager founded in 1929, managing $199.1 billion in assets as of March 31, 2024 [13] - The company has a long-standing $40 billion leveraged credit investment business and recently launched a private credit business focused on middle market corporate lending [4][5] - Lord Abbett manages assets across a full range of U.S. mutual funds, institutional, and separately managed accounts for global clients [5] Strategic Benefits - The partnership deepens Lord Abbett's market presence, expands origination capabilities, and increases scale while diversifying loan origination and private credit offerings [2] - The joint venture allows Stifel Bank to expand its capacity to lead larger credit facilities and better support client growth [5] - Both firms have already co-invested across multiple loans, demonstrating their strong and aligned credit cultures [10] Industry Context - SBLA Private Credit brings together two established brands with in-depth middle market coverage and reputations for strategic growth and disciplined risk management [9] - The joint venture leverages Stifel's entrenched direct lending capabilities and Lord Abbett's significant capital base to address the needs of the origination market [9]