Candriam and Kartesia launch private debt ELTIF
Candriam and Kartesia have launched a joint European Long-Term Investment Fund (ELTIF), focused on private debt opportunities in the European lower mid-market.
The semi-liquid fund is domiciled in Luxembourg and is expected to become available to investors in Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Portugal, Spain and Sweden.
It will focus on the European lower mid-market, where the firms say there is a deep pool of companies with limited financing options compared to larger markets. The portfolio will be diversified across sectors and geographies, with a sustainability approach.
Read more: BNP Paribas: ELTIF 2.0 will drive growth in 2025
Global multi-asset manager Candriam and European private markets investment manager Kartesia are both part of New York Life Investment Management. The firms said that the fund will benefit from Candriam’s fund distribution network and Kartesia’s specialism in the lower mid-market.
The fund comprises two buckets: a liquid short term corporate credit and money market bucket representing 15 per cent of the fund and managed by Candriam, and an illiquid component of 85 per cent private credit strategies, managed by Kartesia.
The ELTIF structure aims to improve retail investor access to illiquid asset classes. It was revamped last year – dubbed ELTIF 2.0 – to improve liquidity, broaden investment opportunities and simplify marketing.
Read more: ELTIF 2.0 sees “good traction” one year after launch
“Retail investors have struggled to access private markets, but ELTIF 2.0 changes that,” said Renato Guerriero, deputy chief executive, chief sales and distribution officer at Candriam.
“In the current interest rate environment, with banks lending less money, there is a clear opportunity in the lower mid-market private debt in Europe. We’re excited to offer an appealing solution through this new ELTIF. Candriam and Kartesia bring over two decades of private and liquid credit management expertise, with a focus on sustainable investing.”
Read more: ELTIFs special report: The road to retail
Charles-Henri Clappier, partner, head of KSO France and business development at Kartesia, added: “The launch of ELTIFs dedicated to private debt is crucial to the aim of increasing access for a broader range of investors to this established yet growing asset class. We are looking forward to bringing our considerable experience in the European lower mid-market to bear which, when combined with the distribution and fund management capabilities of Candriam, will enable the successful delivery of this product to private investors.
“We are looking forward to strengthening our partnership with Candriam, under the New York Life umbrella, as we continue to support Europe’s leading SMEs in their growth and development plans.”
