Australia’s Channel Capital launches European private credit fund
Australian asset management firm Channel Capital has launched a European private credit fund targeted at Australian wholesale investors.
The West Street European private credit fund utilises Goldman Sachs Asset Management’s (GSAM’s) European private credit strategy, and aims to deliver risk-adjusted returns through exposure to directly originated senior secured debt.
The fund will focus on high-quality, mid-to large cap companies with stable cash flows and leading market positions in recession-resilient industries such as healthcare and software.
Read more: Channel Capital Advisors launches asset-backed private credit strategy
The fund will be managed by Channel Capital, and marketed to retail investors, with a minimum buy-in of AUS$100,000 (£51,727.25). It offers monthly applications and redemptions.
“Far from being a niche asset class, European private credit offers exposure to a deep pool of leading global businesses,” said Luke Mandekic, co-head of distribution at Channel Capital.
“Many large European companies within the portfolio generate a significant portion of their revenues from outside Europe, adding to portfolio diversification. The European private credit market is rapidly growing, driven by the demand for alternative financing sources, creating a dynamic environment for investors.
“The West Street European private credit fund provides an attractive opportunity for Australian investors to access a diversified portfolio backed by GSAM’s cycle-tested private credit platform, which leverages the extensive network and sourcing capabilities of Goldman Sachs.”
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The fund is backed by GSAM, which has one of the largest private credit platforms in the world with more than US$110bn (£84.43bn) in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies.
“We have been an active investor in European private credit since 1996 and continue to see the market as a source of returns for investors,” said James Reynolds, global head of direct lending at GSAM.
“Australian investors are increasingly interested in private credit opportunities internationally and through this fund from Channel Capital, they will be able to access the direct lending markets in Europe for diversification.”
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