Wells Fargo Just Unlocked a $4.8 Billion Credit Goldmine--And Almost No One's Watching

Wells Fargo WFC and Centerbridge Partners are quietly reshaping the direct lending landscapeand they're doing it outside the usual private equity lanes. Through their joint platform, Overland Advantage, the duo has deployed $4.8 billion since its launch just over a year ago. That includes $2 billion across nine deals so far this year, with borrowers like Southern Crown Partners and Hand Family Cos. tapping Overland for first-lien term loans. The strategy? Targeting middle-market companies that aren't backed by buyout fundsa segment where competition remains surprisingly thin.

Unlike other players chasing sponsor-led deals in a sluggish M&A market, Overland is leaning into relationships with business owners who've often never considered private credit before. You aren't really running into those competitors, said Bill Neuenfeldt, Centerbridge's COO. That niche focus, paired with long-standing client ties from Wells Fargo's commercial banking arm, gives Overland a warm introduction into spaces where traditional private lenders rarely get in the door. These clients required a direct lending solution that we did not have before Overland, noted David Marks, EVP at Wells Fargo.

It's also a sign of where the credit market is heading. As banks tighten lending standards, they're increasingly linking up with private credit shops to reach borrowers they can't serve on their own. Overland is a case study in that evolution: a platform with joint alignment but independent execution. We speak frequently and candidly to develop the right structures for our borrowers, Marks added. If that formula holds, Overland could become a go-to lender for the overlooked middleat a time when deal-making elsewhere remains slow.