Celebrating 15 Years of Strategic Lending
Jason Colodne and Jason Beckman reflect on the evolution of private credit and the opportunities ahead for Colbeck Capital’s investment strategy
In 2024, we celebrated the 15th anniversary of Colbeck Capital Management. This was a tremendous milestone for our team. As we start a new year, we pause to appreciate our partners and reflect on the path that brought us to this point.
We started our journey in private credit at Goldman Sachs in 1998. This was ten years before the Global Financial Crisis, the main catalyst for the regulatory changes that have fueled the dramatic private credit growth we have seen in more recent years. Then, it was called Hybrid Lending. Private credit was not yet a mainstream term, and it certainly wasn't the $2+ trillion industry that it is today.
1998 was the same year that Google incorporated. Seinfeld had its final episode. Windows 98 was released. Deutsche Bank bought Bankers Trust. Lebron James was in Middle School. It feels like it was a long time ago because it was.
A lot has changed in private credit over the last nearly 30 years. We have witnessed multiple credit cycles, the dotcom boom, the Great Financial Crisis, a global pandemic, and new entrants into the market. Today, as we continue to execute the same investment strategy we ran at Goldman Sachs nearly three decades ago, we want to share some 2024 business highlights, our private credit outlook for 2025, and how we intend to build upon Colbeck’s 15-year track record:
Nearly every week, the front page of major news publications mentions the abundance of capital that is coming into private credit. Originally, we would have thought that more firms in this space would have meant more competition. However, given so much consolidation amongst mega funds and upmarket investing, our bespoke, private equity-style underwriting remains quite unique. Most private credit firms remain price takers of structured loans from PE sponsors. We, on the other hand, are price makers with an alpha generating investment thesis.
With the change of administration comes many a headline focused on market performance, deregulation, and robust M&A activity. Often is the case that geopolitical factors lead to uncertainty for investors. However, our focus remains on investing in businesses experiencing a period of transition. We anticipate 2025 will bring more of these transitions and, as a result, the potential for more investment opportunities.
On December 31st, we concluded fundraising for our latest flagship fund, Colbeck Strategic Lending – raising $700 million in capital commitments and exceeding our target by 40%. With the completion of this fundraise, Colbeck’s current invested and committed capital now stands at $3 billion. We are grateful for the tremendous support we received for the Fund from both new and existing investors and are looking forward to executing on new investments and further scaling our platform and portfolio.
This year, we plan to launch a second, complementary investment strategy. It will utilize the same sourcing network, diligence framework, and investment underwriting as our Colbeck Strategic Lending strategy, with a focus on businesses experiencing their next transition. We look forward to sharing more in the near term.
As experienced private credit investors, shifting markets often present a tremendous opportunity for our investing philosophy. We are excited for what’s in store for Colbeck in 2025, and are grateful to continue our private credit journey alongside our borrowers, investors, and partners.
