The Riverside Company is mulling a potential sale of its direct lending arm, Riverside Credit Solutions.
Sources cited by Bloomberg said that the firm is negotiating with potential buyers of the unit.
The possible sale is part of a range of strategic options that Riverside is exploring, the sources said.
Read more: “Compelling” opportunity for new capital in direct lending
Riverside Credit Solutions, which is headed up by managing partner Dave Dobies, was founded in 2016 and focuses on providing finance to companies in the lower-middle market space.
The private credit sector has been seeing increased M&A activity of late. Last week, it emerged that Brookfield Asset Management is in advanced talks to buy a majority stake in Castlelake, a specialist private credit investor.
And in February, Amundi announced its plans to acquire private markets specialist Alpha Associates as it seeks to grow its exposure to private debt, infrastructure, private equity and venture capital.
