GP Stakes Firm Armen Buys Stake in Credit Fund Chorus Capital

Armen, a European investment firm focused on buying stakes in private equity houses, is buying 16% of Chorus Capital in its first investment in the alternative credit space.

Chorus Capital’s senior management will invest a significant part of the proceeds into the firm’s next fund, according to a statement seen by Bloomberg News. Some will be used to boost growth in in risk-sharing transactions, which provide default protection for loan portfolios.

The global market for significant risk transfers has reached a record level as European lenders use such instruments more to boost profitability ratios, according to Chorus Capital. Global issuance ...