Lazard and Arini Capital Management, the $7.9bn credit-focused hedge fund founded by ex-Credit Suisse star trader Hamza Lemssougue have entered into a strategic partnership to expand direct lending solutions across the EMEA region.
Through the agreement, Arini will gain access to Lazard’s corporate and sponsor advisory network, while Lazard’s clients will be introduced to Arini’s private credit strategies – potentially opening new capital solutions for mid-market borrowers.
The deal marks a notable step for hedge funds deepening their involvement in private credit. Arini’s Europe-focused direct lending fund, set to launch with backing from British Columbia Investment Management Corporation (BCI) and other institutional investors, aims to capitalise on financing gaps in the middle market.
“Arini has deep roots across European and global credit markets where we have been seeing significant convergence between public and private credit,” said Lemssougue in a press statement. “We are excited to partner with Lazard’s sector, country, and product bankers across Europe to provide access to financing opportunities, with the goal of generating strong risk-adjusted returns for our investors.”
Lazard’s move to bolster its private credit capabilities aligns with a broader trend of hedge funds stepping into areas traditionally dominated by banks. The agreement will allow Lazard to enhance its capital solutions offering while providing Arini with a steady pipeline of direct lending opportunities sourced through Lazard’s advisory network.
The deal comes as private credit continues to attract significant institutional capital. The EMEA mid-market lending space is viewed as particularly ripe for expansion, with hedge funds and alternative credit managers stepping in to fill gaps left by traditional lenders amid tighter banking regulations.
“Positioning Arini’s credit investment capabilities alongside Lazard’s origination creates a highly differentiated and scalable approach to pursue European direct lending opportunities, particularly in the core middle market,” said Daniel Garant, EVP & Global Head of Public Markets at BCI.
Under the agreement, Lazard will retain its independence in providing financing advice to clients, while Arini will maintain full autonomy over its investment decisions. The collaboration is expected to provide institutional investors with access to an alternative private credit strategy at a time when the sector is experiencing heightened demand.
