- Reverence Capital is launching or scaling a private-credit strategy led by ex-Goldman trader Peter Aberg as Co-CIO of Credit.
- The firm has built a deep former-Goldman credit team and has already managed PE and credit vehicles alongside its larger private-equity franchise.
- It is targeting opportunities created as banks pull back from lending, especially in specialty finance and structured or non-securitized credit.
- Key unknowns include exact focus, leverage and fund terms, and the main risks are underwriting intensity, regulation, and downturn performance.
Read More
Reverence Capital Partners, founded in 2013 by former Goldman Sachs executives (including Peter Aberg and Alex Chulack), is launching or expanding a private-credit arm led by ex-Goldman talent. Aberg, who spent 28 years at Goldman and now is Co-CIO of Credit at Reverence, anchors the strategy with significant experience in specialty finance, structured products, principal investing, and asset backs. This reflects a clear intention to apply Goldman-style rigor and underwriting discipline to credit investments, focusing on sectors where the team has domain expertise.
The firm already manages sizable private-equity funds—its Fund II closed at US$1.2 billion hard cap—and has been building out its credit platform with hires like Steven Herrup (former Goldman MD in structured investing), Josh Swidler (from Elliott Associates, Lehman), Ying Wang, and Jeff Nabi. Reverence already… “has one Credit Fund” among its vehicles alongside PE and co-investment programs. This is not a speculative move, but rather transitioning toward becoming a multi-strategy credit investor.
There is structural tailwind. As banks retreat (due to regulatory capital, risk, rates), there is rising demand for private credit across mid-market and specialty finance. Clients, including PE sponsors or firms in distressed or non-standard credit cycles, increasingly require financiers who can structure flexible loans, hold non-securitized credit, or absorb downgrades. Reverence’s leadership in structured finance, specialty finance, and financial-instrument investing places it well to compete in this gap.
Strategic implications for Reverence include the need to scale carefully: credit investing demands more granular risk management (liquidity risk, credit loss, covenant monitoring) than typical PE control deals. Execution in sourcing, underwriting, and monitoring non-loan credit—perhaps ABS, receivables, specialty finance—will matter. Also, fund-term clarity (fee structure, preferred return, leverage, liquidity) will influence LP interest and the firm’s competitive positioning.
Potential risks include macro-credit stress (rate hikes, defaults), illiquidity of private credit in downturns, regulatory changes (bank-like constraints, risk retention), and underperformance if underwriting discipline slips. Also, differences between delivering value in control private equity vs. providing junior or structured credit exposure need careful calibration to avoid misvaluation and losses.
Some open questions include: which segments of credit will Reverence target (senior secured, mezzanine, specialty finance, distressed, structured products)? What will its leverage policy be? How will the fund operate: sourcing through its existing financial services network, partnerships, or through markets? What are expected returns vs. comparables? For LPs, what are the fees and liquidity terms intended?
Supporting Notes
- Reverence’s Private Credit leadership team includes Peter Aberg (Co-CIO, Credit), formerly a Managing Director and Partner at Goldman Sachs having oversaw specialized finance and structured products lines.
- Steven Herrup, Deputy CIO of Credit, also formerly a Managing Director at Goldman Sachs’ Special Situations Group, adds depth and track record in structured investing.
- Firm Assets Under Management are reported at approximately US$12.4 billion, with 36 funds.
- Fund II (a private equity fund) closed at US$1.2 billion, exceeding its prior target of US$750 million.
- The firm has already set up a Credit Fund among its investment vehicles; data from its internal presentations show about US$7.2 billion invested to date across PE, credit, co-investment vehicles.