Ninety One, the global investment manager with £128.6 billion in assets under management as at 30 June 2024, today announced the final close of its European Credit Opportunities Fund 1 (the “Fund”). The Fund closed with c. €150 million of investor commitments from a broad range of high-quality, institutional and private investors from across the globe, inclusive of the UK, Europe, the Americas, and South Africa.
The Fund provides tailored asset-based private credit solutions to underserved non-sponsored borrowers in European mid-markets. Recent transactions include directly originated bilateral loan facilities for a founder-owned German renewable energy company, a privately-held UK waste recycling business and a family-owned Swiss consumer products business.
Through a diverse portfolio of directly negotiated asset-based loans, the Fund complements traditional fixed income and private credit by offering investors access to a differentiated private credit strategy that targets uncorrelated returns, an attractive cash yield and downside protection.
Mimi Ferrini, Co-Chief Investment Officer, Ninety One: “The closing of the European Credit Opportunities Fund represents an important milestone in the ongoing expansion of Ninety One’s Alternative Credit platform. Investors are increasingly seeking managers who can offer them differentiated private market products and our European Credit Opportunities strategy represents one such product amongst several that we offer.”
Chris Rust and Lei Lei, Co-Portfolio Managers, Ninety One: “While the traditional sponsor-focused direct lending market in Europe has become highly competitive, the market for lending to non-sponsored European borrowers remains significantly less crowded due to distinct entry barriers.
“With our proprietary origination capability, we are able to access this market directly and provide valuable alternative credit to asset-rich non-sponsored borrowers. These borrowers are often highly creditworthy and willing to pay a premium for flexible non-dilutive capital that enables the achievement of their objectives. We believe that we are well positioned to capitalise on this attractive market opportunity and deliver a valuable proposition to both borrowers and investors.”