- Reverence Capital is preparing a new private credit fund led by structured-finance veterans, including ex-Goldman trader Peter Aberg.
- The firm’s latest disclosed vehicle, Credit Opportunities Fund III, had raised about $246 million as of March 2025.
- The strategy targets niche and structured credit such as ABS, specialty finance, and distressed or non-performing loans.
- Market dislocation from higher rates and bank pullbacks could create opportunity, but key details like fund size, LP demand, and differentiation remain unclear.
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Based on public filings and firm disclosures, Reverence Capital is positioning a scalable credit strategy, anchored by senior talent with long histories in structured and specialty finance. The Private Credit team includes Peter Aberg (co-founder/co-CIO), who spent 28 years at Goldman Sachs in roles ranging from the Securities Division and Principal Finance to Specialty Finance advisory and structured portfolios. Others, like Steven Herrup (former Goldman Sach’s MD in Special Situations and Structured Investing) and Jeff Nabi (with securitization and non-QM mortgage expertise), bolster capacity in asset-backed credit and non-standard loan segments.
On the fundraising front, Reverence’s Credit Opportunities Fund III (Fund VI) L.P., an offshore vehicle, reported raising US$246 million via an amended filing in March 2025, up from US$135 million one year earlier. This likely reflects ongoing capital deployment or adjustments, but suggests a moderate-size fund in today’s private credit environment. The vehicle was active in 2024 and 2025, targeting credit opportunities in asset-backed securities, specialty finance, and related structured credit.
Strategically, the timing aligns with market dislocations: tightening credit spreads, stressed platforms (especially in non-bank lending), regulatory headwinds for banks pushing demand toward private credit; plus interest rate normalization benefits floating-rate instruments. With strong underwriting and structuring capabilities, Reverence may exploit inefficiencies in underfollowed or opaque niches (e.g., non-agency RMBS, non-QM loans, structured debt with weaker sponsorship).
However, key uncertainties persist: the target scale of the new fund (how much additional capital will be raised), the LP base (institutional vs family office; geography), fee terms, leverage policy, pooling structure (onshore/offshore), and whether the firm will specialize in direct origination or secondary / trading strategies. Competitive pressure from specialists and larger firms with scale in private credit also raises the bar for execution and differentiation.
In execution terms, risk management will be critical: selection of collateral types, covenant strength, exposure to interest rate volatility, and liquidity provisions. The presence of senior personnel with track records establishes credibility, but delivering downside protection in stressed credit sectors remains a challenge.
Supporting Notes
- Peter Aberg co-founded Reverence in 2013, previously spent 28 years at Goldman Sachs including as MD/Partner in structured finance and specialty finance roles.
- Steven Herrup and Jeff Nabi both join with deep backgrounds in structured/product credit, non-QM loans, and special situations from Goldman and other firms.
- The firm’s Private Credit fund, Credit Opportunities Fund III (Fund VI), raised approximately US$246 million in 2025 as per amended SEC filing, compared to US$135 million in 2024.
- Previous fund, Opportunities Fund II, closed at a hard cap of US$1.2 billion, exceeding its US$750 million target, showing ability to raise large LP commitments for earlier credit and financial services control-oriented strategies.