First Eagle and Amundi launch private credit fund
New-York-based First Eagle Investments has teamed up with European asset manager Amundi to launch the First Eagle Amundi Private Credit Fund.
The new, evergreen fund will give non-US professional investors access to First Eagle’s US private credit strategy through Amundi’s distribution network across 35 countries.
First Eagle and Amundi have maintained a strategic partnership for more than 25 years, launching their first fund, the First Eagle Amundi International Fund IU, in 1996.
First Eagle is an independent, privately owned investment management firm with approximately $149bn (£118.6bn) in assets under management as of 30 September 2024.
Amundi, which is one of Europe’s largest asset managers, currently manages more than €2.15tn of assets.
Read more: Amundi and First Eagle plan new private credit fund
First Eagle’s US private credit strategy seeks to invest primarily in directly originated first lien senior secured cash flow loans, directly originated asset-based loans, club loans, second lien loans and broadly syndicated loans and other debt securities.
The firm’s direct lending strategy is focused on US lower middle market companies with annual EBITDA of between around $5m and $50m.
The portfolio managers for the strategy include Michelle Handy, chief investment officer of direct lending; Robert Hickey, chief investment officer of tradable credit; Larry Klaff, head of asset-based lending; with Garrett Stephen and Brian Murphy as co-heads of origination.
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“We are excited to partner with Amundi to bring access to First Eagle’s US private credit strategy to the global market,” said Handy. “By leveraging our 15-year track record of managing direct lending portfolios across various market environments, 50-plus investment professionals and a unique focus on lower US middle market borrowers, we believe the sub-fund should resonate with professional investors globally, in our view.”
Amundi head of distribution and wealth division, passive business line, Fannie Wurtz added: “The search for enhanced diversification, current income and additional sources of return is a common trend for a variety of professional investors, from institutions to wealth managers and HNWIs, who are increasingly shifting their allocation models. This is why we believe the launch of the sub-fund comes at an opportune time and offers a compelling investment opportunity for a wide range of investors in Europe, the Middle East and Asia.”
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