The SPV had a single investor, an insurance firm, backing the SPV and the insurer sold its stake to Tikehau, sources familiar said. Tikehau acquired the stake at a discount that sources described as within the typical range for credit secondaries deals. The typical discount range for most credit secondaries transactions is 5%-15%, according to sources in the space.

Ely Place Partners advised Brightwood on the transaction, according to sources. The advisor has partnered up with Brightwood on secondary transactions in the past, and also acts as a placement agent for Brightwood.

“We have long been believers in the potential of the private debt secondary market and we are delighted that Tikehau and our client, Brightwood Capital, have formed this partnership,” said Daniel Roddick, founder of Ely Place, in a statement to 9fin.

“We believe there is much to come as the market continues to grow, providing liquidity to LPs and creative solutions for GPs.”

Upwelling Capital Group, which 9fin first wrote about when we covered the early stages of the deal last year, also served as an advisor to Brightwood and the seller on this transaction.

The insurance LP exited the investment because it sought to trade into lower risk assets, such as regular-way investment grade strategies, sources told 9fin. The elevated rate environment has meant that insurers can hit more of their yield targets through less risky assets.

This is in line with a broader rotation out of alternatives for some insurance LPs as IG yields rose with base rates, sources in the credit secondaries market added.

Earlier this year, 9fin wrote about how the increasing number of buyers in the credit secondaries space has driven up the average pricing in the market. PC fund stake prices have risen to a seven-year high, according to a recent report.

Tikehau declined to comment for this story. Brightwood did not provide comment by time of publication.

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