Fidelity to shutter its European direct lending business as co-CIO steps down
Fidelity International is winding down its European direct lending business and will be cutting jobs, as it emerged that the firm’s co-chief investment officer for fixed income, multi asset and private assets has stepped down.
Andrew McCaffery has departed after five years at Fidelity, a spokesperson confirmed, with Andrew Wells, president of Fidelity Canada, to take over his role on an interim basis.
Wells previously held the position of global chief investment officer of fixed income, solutions and real estate at Fidelity International from 2010.
Read more: Fidelity bolsters private assets team
The spokesperson said that Fidelity International remains committed to private assets, with plans to expand its real estate and collateralised loan obligation (CLO) businesses.
However, following a strategic review, the firm has decided not to proceed with manufacturing proprietary European direct lending and infrastructure investment capabilities.
Some roles will be impacted by this decision, the spokesperson said.
Read more: Fidelity launches its first European direct lending fund
“Our commitment to private assets remains,” said the spokesperson.
“We fundamentally believe that access to private markets is an important consideration and component of a client’s overall investment strategy, and our aim is to offer access to a broad range of products and solutions in this space, either through our own investment capabilities or providing access to those of third parties.
“Fidelity is in a unique position to capture the growing client interest in private assets with our strong wholesale, defined contribution, and personal investing businesses. We have the expertise, scale, and innovation to offer our clients access to high-quality private assets that can enhance their returns, diversify their portfolios, and meet their long-term goals.”
