Adia doubles down on private credit: The Abu Dhabi Investment Authority (Adia) is launching a significant risk transfer (SRT) fund with London-based private credit manager Christofferson Robb & Company (CRC), a manager offering non-dilutive capital to European banks, according to a statement.

It also acquired a participating interest in CRC — meaning a long-term stake through which it might take an active role in the firm. The size of the stake and the value of the fund were not disclosed.

SRTs? SRTs allow banks to shift some of their credit risk to third-party investors, to help reduce their regulatory capital requirements. CRC says it provided credit protection for 1.2% of performing corporate bank loans in the EU.

The move broadens Adia’s private credit exposure to bank capital relief not only through exposure but also through active interest, widening its scope from real estate and corporate lending. Its recent private credit investments, including in Dignari Capital Partners’ APAC Developed Markets Private Credit Strategy and a real estate secondaries platform in a partnership with Ardian, have largely been focused on direct lending, with the real estate angle being the most dominant.

There’s a lot in it for Adia: “It gives Adia an entry point into a market where access depends on regulatory knowledge, repeat relationships with bank counterparties, and structuring and execution capability,” Global SWF wrote in a recent note seen by EnterpriseAM.

ADVISORS- Freshfields provided counsel to Adia, Piper Sandler & Co served as financial advisor, and Latham & Watkins provided counsel to CRC.

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