Muzinich & Co launches evergreen European private credit ELTIF
Muzinich & Co has launched an open-ended European private credit fund using the revamped European Long-Term Investment Fund (ELTIF) structure.
The fund aims to construct a diversified portfolio of around 50 senior-secured direct lending investments in medium-sized companies, focusing on conservatively managed businesses that offer quality products and services and play a vital role in their local economy.
The investment firm, which specialises in credit, said that the new vehicle has been designed with retail investors in mind and seeks to regularly distribute an attractive level of income. It complies with the updated ELTIF regulation that came into force in 2024, dubbed ELTIF 2.0, designed to increase investor access to private assets and boost the real economy.
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It is an evergreen vehicle that will offer investors monthly liquidity windows from inception, with no minimum holding period.
Specifically, the fund will provide monthly liquidity windows of up to two per cent of the fund’s NAV and five per cent per quarter, with 30 business days’ notice.
“Typically, private credit offers a higher return in exchange for illiquidity, which is why it has historically dominated by institutional investors,” said Muzinich managing director Hugo Wheeler. “Our new ELTIF aims to offer retail investors access to the potentially attractive returns offered by private credit, while providing enhanced liquidity and a low minimum investment (€1,000 (£793.89)).”
Read more: AXA IM Alts launches first private credit fund under ELTIF 2.0
Rafael Torres and Carlo Bosco, co-portfolio managers, Muzinich European Private Credit ELTIF, added: “Muzinich has significant experience managing private credit and ELTIFs. In 2019, Muzinich was one of first asset managers to launch an ELTIF that combined public and private credit assets in one portfolio, and have since established six further ELTIF strategies.
“Our locally based investment teams have in-depth knowledge of the local opportunities, company networks, regulations and business practices. We take a selective approach to the companies we invest in, pursuing transactions that we believe can best meet the risk-adjusted return objectives of our clients.”
The Muzinich European Private Credit ELTIF will be available for sale in Austria, France, Germany, Italy, Luxembourg, Spain, Switzerland and the UK.
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