Alternative investment manager Chicago Atlantic plans to launch an emerging markets private credit strategy.

The platform will focus on senior secured loans, structured credit, and asset-backed financing solutions and is expected to expand the firm's private credit capabilities into high-growth markets across Latin America, Asia, Eastern Europe, the Middle East, and Africa, a press release stated.

The strategy will be led by Peter Marber and Jim Garvey. 

Marber previously led the emerging markets business at UBS, HSBC and Loomis Sales, while Garvey previously managed portfolios at Emso Asset Management and held roles at Bank of America Merrill Lynch, Santander, Bancomer, ABN Amro, and Smith Barney, among others.

Scott Gordon, Chicago Atlantic partner, will oversee the business. Gordon previously worked as a founding member of JPMorgan's Emerging Markets Business. He also held emerging markets-related positions at ING Bank, and the Global Special Situations Group at Bank of America. 

Umesh Mahajan, Bill Healy and Jack Flaherty will also be joining the emerging markets team.

"Emerging markets present a compelling opportunity for private credit investors," said Chicago Atlantic Partner Tony Cappell. "Bank retrenchment, regulatory constraints, and growing demand for non-dilutive capital have created a significant opportunity for experienced private credit managers to deliver attractive risk-adjusted returns while supporting the growth of high-quality businesses."

The emerging markets strategy is expected to attract institutional investors seeking yield, portfolio diversification, and exposure to structurally growing economies, while focusing on strong corporate governance and robust risk controls, the firm said.

This launch comes at a time when the private credit sector is under immense strain. Rising rates, tighter liquidity, and a broader risk-off environment squeezed a corner of finance that had expanded rapidly. 

Recently, banks and asset managers have issued warnings or restricted lending in their private credit portfolios during ripples in the market.

Ares Management, (NYSE:ARES), JPMorgan(NYSE:JPM) , Morgan Stanley (NYSE:MS) , Barings (NYSE:BBDC), and BlackRock (NYSE:BLK) are just a few of the firms that have limited withdrawals from their private credit-focused funds in recent weeks.

Chicago Atlantic is not the first asset manager to capitalize on an opportunity in the private credit space, despite recent turmoil.

Morgan Stanley is preparing to launch a structured interval fund focused on credit, while JPMorgan also filed with the SEC to launch its JPMorgan Public and Private Credit Fund.

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