The Riverside Co. is exploring strategic options including a sale of its direct lending arm, Riverside Credit Solutions, according to people with knowledge of the matter.
The firm is negotiating with potential buyers of the unit, said one of the people, all of whom requested anonymity in discussing confidential information.
The possible transaction is part of a trend as asset managers and insurance companies seek to broaden their exposure to firms involved in private credit. Eldridge Industries is among final bidders in talks to acquire European firm Hayfin Capital Management, Bloomberg News reported last week. In March, Dai-ichi Life Holdings agreed to buy a 19.9 percent minority stake in Canyon Partners.
Riverside Credit Solutions, led by managing partner Dave Dobies, was founded in 2016 and provides financing to private equity-owned companies and other borrowers, with a focus on those that operate in the lower-middle market.
A Riverside representative declined to comment.
