Family Office Spinout With $10 Billion Forms Private Credit Team

An investment firm that was once part of Microsoft Corp. co-founder Paul Allen’s family office is targeting private credit as it looks to expand globally.

Cercano Management sees direct lending as its biggest growth area this year and plans to hire three people to help in the effort, according to a person with knowledge of the matter. The firm, formerly known as Vulcan Capital, was spun out of the late billionaire’s family office in late 2021 as a standalone business catering to the world’s super-rich.

Cercano still oversees investment assets for the estate and family foundation of Allen, who died in 2018. It’s led ...