Australian investors commit A$705m to European direct lending
Nuveen has raised A$705m (£372.6m) from Australian investors, including superannuation fund Brighter Super, for European direct lending.
Queensland-based Brighter Super, Jana Private Credit Trust and two other leading Australian institutional investors have committed the combined capital to a dedicated portfolio managed by Arcmont Asset Management, an investment affiliate of $1.4tn (£1.03tn) Nuveen.
According to the company, the strategy will provide investors with access to senior-secured, unitranche and subordinated loans in European mid and upper-mid-market companies, with a focus on non-cyclical, defensive sectors.
“Private credit continues to play an important role in institutional portfolios globally, particularly as investors seek diversified sources of income and exposure to strategies with defensive characteristics,” said Anthony Fobel, chief executive of Arcmont, a European private credit asset manager with A$74bn of investable capital.
“We are delighted to partner with these leading Australian investors through a dedicated solution that provides efficient access to Arcmont’s European direct lending platform at significant scale.”
The deal comes as Europe has become a more attractive market for investors seeking exposure to direct lending over the past year, while the US continues to face headwinds, from concerns over the extent of its software exposure to geopolitical constraints.
“This investment reflects our focus on high-quality private credit opportunities that can provide resilient income and diversification for members,” said Kate Farrar, chief executive of Brighter Super.
The news also comes as Australian investment adviser Jana announced the launch of the Jana Private Credit Trust for wholesale investors last week, with funds under management exceeding A$270m.
