Eldridge and Carlyle AlpInvest have formally launched Eldridge Diversified Credit Fund I, a new private credit vehicle with approximately $1.5 billion of investable capital. The fund marks the first closing under Eldridge’s diversified credit platform and reflects a broader push by alternative managers to institutionalize private lending strategies once dominated by bank balance sheets.

The vehicle is structured around a combination of equity commitments from Carlyle AlpInvest and co-investors, alongside a senior financing facility arranged by BNP Paribas. This capital stack allows the fund to pursue a wide range of credit assets, including corporate loans, asset-backed lending, equipment finance, and structured credit exposures.

EDCF I was seeded through a credit secondary transaction, transferring a diversified portfolio of loans and leases from Eldridge and affiliated entities into the fund. This approach provided immediate scale while allowing Eldridge to recycle capital and continue originating assets through its broader platform.

The launch comes as private credit continues to absorb demand displaced by tighter bank regulation and constrained balance sheets. By pairing secondaries expertise with a dedicated origination engine, the Eldridge–Carlyle partnership is positioning itself to capture yield-oriented opportunities across multiple credit cycles.

➤ TAKEAWAY

This fund isn’t about chasing yield—it’s about structure. The combination of secondaries capital, balance-sheet rotation, and institutional leverage signals how private credit platforms are evolving into permanent capital solutions rather than episodic funds.