Fifth Third Bancorp and Eldridge Capital Management have announced a strategic partnership that would allow commercial banking clients to gain access to private credit operations.
The private credit program was designed to enhance the ability for “both parties to meet emerging and evolving needs and provide reliable private credit solutions to clients,” Fifth Third stated.
“This marks a significant moment in providing a private credit solution for our clients,” Kevin Khanna, head of commercial banking at Fifth Third Bancorp, said. “By uniting complementary strengths and deepening our relationship, we are positioned to unlock new opportunities and enhance our collective value proposition.”
The joint deal would allow for Eldridge Capital Management to deepen and strengthen its existing relationship with FifthThird and would largely support the firm’s “affiliate asset-based credit growth” model through building a “large-ticket equipment finance origination” platform, Nicholas Sandler, co-president of Eldridge Capital Management, said.
“This new partnership in private credit reflects a natural evolution of our engagement, grounded in a shared dedication to excellence,” Sandler said.
The collaboration draws on a wider trend that has been occurring frequently between private credit managers and traditional commercial banks, as they are seeking various methods to serve the secondary market.
Banks are also leaning towards offering more private real estate credit for clients who are aiming to broaden their approach to real estate lending by expanding indirect lending via warehouse lines and note-on-note leverage.
Fifth Third Bancorp, founded in 1858, is the indirect parent company of Fifth Third Bank, which offers wealth management, commercial, and personal banking services.
Eldridge Capital Management is an asset management and insurance holding company, which manages over $70 billion in assets under management across its Eldridge Capital Management and Eldridge Wealth Solutions divisions.
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