Brightwood Capital Advisors, a private credit firm with more than $6 billion in assets under management (as of September 30, 2025), today announced the assumption of the management of two private credit funds previously managed by Capital Dynamics. Under the terms of the transaction, Brightwood will assume management of the funds’ portfolios, representing approximately $300 million in commitments. The existing fund structures will remain in place, allowing current limited partners (“LPs”) to maintain their investments in a seamless manner with no additional capital commitment required. Financial terms of the transaction were not disclosed.
The transaction underscores Brightwood’s continued commitment to direct lending to the US middle market and its solution-driven approach. With a team of approximately 70 professionals focused on private credit, Brightwood brings deep expertise and operational capabilities to manage legacy portfolios of this nature. Brightwood and Capital Dynamics worked closely together, leveraging their experience in situations requiring secondary as well as primary capital to develop a comprehensive solution that meets the diverse needs of global LPs, offering both a continued investment opportunity and liquidity through a secondary purchase option in partnership with Tikehau Capital. This marks the second transaction Brightwood has completed with Tikehau in the past 18 months.
“We are thrilled to welcome these portfolios and investors to the Brightwood platform,” said Sengal Selassie, Chief Executive Officer and Founder of Brightwood. “This transaction demonstrates Brightwood’s dynamic approach to partnership and our ability to deliver tailored solutions in an evolving private credit landscape. Our experienced team which boasts 12 risk and portfolio management professionals, including dedicated special assets professionals, positions Brightwood to be a solution for private credit portfolios that require a robust, focused approach.”
Martin Hahn, Chief Executive Officer at Capital Dynamics commented: “We’re delighted to conclude this process by partnering with Brightwood on this transaction. Through our comprehensive strategic approach, we were able to find a partner with strong alignment, investment acumen, and robust operational capabilities for the next stage of the funds’ growth.”
“Our collaboration with Brightwood highlights Tikehau Capital’s commitment to delivering innovative secondary solutions that respond to investors’ evolving needs,” said Pierpaolo Casamento, Head of Private Debt Secondaries at Tikehau Capital. “Brightwood has been a trusted partner for many years, and we’re delighted to strengthen our relationship through this transaction by providing tailored capital solutions that unlock long-term value for investors.”
Dechert LLP served as legal advisor to Brightwood. Clifford Chance LLP served as legal advisor to Capital Dynamics. Goodwin Procter LLP served as legal advisor to Tikehau.