Tether and Fasanara Capital launched StableFund on September 9, a private-credit vehicle backed by $400 million in combined sponsor capital and targeting up to $3 billion in additional fundraising from institutional investors.
StableFund will deploy capital into short-duration, asset-backed loans across fintech networks spanning more than 60 countries. The fund will finance small and medium-sized businesses, consumers, trade receivables, and supply-chain credit. Tether will originate USDT-linked financing and provide settlement infrastructure, while Fasanara Capital, a London-based investment manager overseeing $6 billion in assets, will serve as portfolio manager.
The vehicle is structured as an evergreen fund, allowing continued capital raising and deployment rather than winding down at a predetermined maturity date.
Tether’s Crypto-Lending Position
Tether controlled approximately 60% of the $23 billion centralized crypto-lending market at the end of June, with roughly $13.5 billion in outstanding secured loans, according to Galaxy Research data.
The private-credit sector globally is valued at $3 trillion. In May, the Financial Stability Board warned that private credit has yet to be tested through a prolonged economic downturn and highlighted weaker borrower quality, high leverage, opaque valuations, and growing links between private funds, banks, and insurers as vulnerabilities. The FSB also flagged rising use of payment-in-kind arrangements and rising defaults as evidence of borrower stress.
Loan Health Deterioration
An August Wall Street Journal analysis found worsening loan health and investor returns across publicly traded funds overseen by Ares Management, Blackstone, Blue Owl Capital, and Golub Capital. Blue Owl’s default rate rose to 2.8% in the second quarter, its highest in at least five years since the 2021 baseline.
Ares Management, Blackstone, Blue Owl Capital, and Golub Capital have pushed back against suggestions that deteriorating loan health signals a broader crisis, arguing portfolio credit quality remains resilient and default rates remain below levels reached during severe episodes such as the Covid-19 shock.
Fasanara’s Role
Fasanara Capital manages $6 billion in assets and will oversee StableFund’s portfolio management and deployment decisions. The firm’s selection as co-sponsor and portfolio manager positions it alongside Tether in originating and managing the fund’s loan portfolio.
