AXA IM Alts launches first private credit fund under ELTIF 2.0
AXA IM Alts has launched a new private credit fund which has already raised over €230m (£193.4m), under the European Long-Term Investment Fund 2.0 (ELTIF 2.0) regulation.
The fund, which focuses on financing private mid-sized companies, is currently only open to individual investors in France.
With a focus on direct lending, the fund will predominantly invest directly or indirectly in non-bank loans granted to private corporates located in Europe or in a member state of the Organization for Economic Cooperation and Development (OECD).
Loans are diversified by sector and geographical area with particular attention paid to the repayment capacity of borrowers.
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ELTIF 2.0 was launched on 10 January 2024, and was designed to enhance liquidity, broaden investment opportunities, and simplify marketing, compared to the original ELTIF. The investment vehicle was created to appeal to retail investors.
AXA IM Alts currently has around €6bn of assets under management in evergreen private market strategies for wealth investors. Its ambition is to continue to accelerate on private wealth segment which it has started operating through real estate, infrastructure, and private equity funds.
“Throughout different cycles, private debt has demonstrated resilience and robustness as an asset class and has been very popular with institutional clients for more than a decade,” said Florence Dard, global head of client group, Alts at AXA IM. “Building on our expertise in managing evergreen private market strategies for wealth investors, we are delighted to be able to now offer a private debt fund to a retail and private wealth audience under ELTIF 2.0. Private wealth segment is a key area of growth for AXA IM Alts, and we are excited to further expand our retail offering to the dynamic private credit market and continue to address the needs of global retail and private wealth clients through the launch of this new solution.”
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AXA IM Alts global head of alternative credit Christophe Fritsch added: “We see private debt as a building block for retail private assets exposure: with its natural ability to repay and a return mostly made of cash interest payments, it naturally fits the evergreen nature of the ELTIF 2.0 structure. AXA IM Alts longstanding track-record in the asset class is now offered to private wealth investors.”
The fund is currently only registered and open for subscription in France through insurance products.
AXA IM managed approximately €869bn in assets as at the end of September 2024, including non-consolidated entities. It had €480bn of ESG-integrated, sustainable or impact assets as at the end of December 2023.
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