Invesco has launched a new European private credit fund, structured as an ELTIF — the European equivalent to LTAFs.
This will enable pension funds, institutional investors and wealth clients to access a portfolio of European upper middle market senior secured corporate loans.
The fund will be managed by Invesco’s European private credit team, led by Michael Craig, head of European senior loans.
The strategy aims to offer low correlation to traditional asset classes while offering a higher yield that more liquid debt strategies. It also leverages Invesco’s position as a leading corporate lender, offering access to consistent income from loans to larger more established European companies.
The fund is an evergreen structure, featuring monthly subscriptions and quarterly redemptions.
Michael Craig, head of European senior loans at Invesco says: “Investors have historically beennervous to lock away their capital in long-term structures. This fund addresses this concern through a competitive cost structure for a flexible, semi-liquid product that opens up the investment opportunity to a wider client base.
The loans market has evolved and now benefits from more flexible investment strategies which can provide an attractive yield premium, while still ensuring consistent deployment of capital in evergreen structures.”
Invesco head of EMEA Distribution Oliver Bilal adds: “We believe this proposition complements investors’ existing equity and bond portfolios, offering attractive and stable income potential
“It’s so important that our clients are able to preserve and grow wealth through different market cycles and we want to streamline the investor experience. We believe this product offers institutional quality without the high performance fee historically associated with other ELTIF structures.”
This Invesco Upper Middle Market Income Fund is an Article 8 fund, under SFDR classification, and aims to provide investors with a product that delivers yield and diversification, taking relevant ESG considerations into account.
The European team of Invesco’s private credit platform t manages over €9 billion in European loans and over the past seven years has deployed upwards of €19 billion into European upper middle market companies.