Pollen Street reports strong performance in private credit strategy
Pollen Street Group has said that its private credit strategy is performing well and it is approaching a first close for its fourth private credit fund ahead of plan.
The alternative asset manager said in a fourth-quarter update that it recently closed a £225m separately managed account under its credit strategy that will lay the path for growth in assets under management throughout 2024.
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Pollen Street manages assets across both private equity and private credit strategies, as well as conducting its own balance sheet investments into a portfolio of senior asset-backed credit assets.
The firm said that its asset management business is seeing strong deployment opportunities across both strategies, bringing fee-paying assets under management to £3.4bn as of 31 December 2023, a 36 per cent increase from £2.5bn at the end of 2022.
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Meanwhile, its investment arm reported “robust” returns in the fourth quarter, with “stable credit performance and rising yields”.
This resulted in an 8.8 per cent return for 2023, driven by higher yields that reflect the re-pricing of facilities into the higher interest rate environment.
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“Performance remains strong, benefitting from the senior secured strategy, even amidst a changing macroeconomic environment,” the firm said. “The portfolio remains well positioned with a good pipeline of opportunities.”
Pollen Street’s investment arm has committed over £120m into Pollen Street managed funds and will be investing into the first close of the fourth private credit fund.
