Ninety One raises €150m for European private credit fund
Asset manager Ninety One has raised around €150m (£125.3m) for the final close of its European asset-based private credit fund.
The European Credit Opportunities Fund 1 has attracted investment from institutional and private investors from across the globe, inclusive of the UK, Europe, the Americas, and South Africa.
The fund provides asset-based lending to underserved non-sponsored borrowers in European mid-markets.
Read more: ICG raises $1.9bn for North American private debt fund
Recent transactions include directly originated bilateral loan facilities for a founder-owned German renewable energy company, a privately held UK waste recycling business and a family-owned Swiss consumer products business.
The firm says the fund complements traditional fixed income and private credit by offering investors access to a differentiated private credit strategy that targets uncorrelated returns, an attractive cash yield and downside protection.
“The closing of the European Credit Opportunities Fund represents an important milestone in the ongoing expansion of Ninety One’s alternative credit platform,” said Ninety One co-chief investment officer Mimi Ferrini. “Investors are increasingly seeking managers who can offer them differentiated private market products and our European credit opportunities strategy represents one such product amongst several that we offer.”
Read more: BNP Paribas closes third European private debt fund
Ninety One co-portfolio managers Chris Rust and Lei Lei added: “While the traditional sponsor-focused direct lending market in Europe has become highly competitive, the market for lending to non-sponsored European borrowers remains significantly less crowded due to distinct entry barriers.
“With our proprietary origination capability, we are able to access this market directly and provide valuable alternative credit to asset-rich non-sponsored borrowers. These borrowers are often highly creditworthy and willing to pay a premium for flexible non-dilutive capital that enables the achievement of their objectives. We believe that we are well positioned to capitalise on this attractive market opportunity and deliver a valuable proposition to both borrowers and investors.”
Ninety One had £128.6bn in assets under management as at 30 June 2024.
Read more: Park Square Capital raises €3.4bn for European direct lending strategy
