AXA IM Alts has launched a diversified evergreen private credit strategy. The strategy will invest across the entire private credit spectrum, from direct lending to asset-backed finance.
With a portfolio directly sourcing credit instruments, the fund aims to capture the yield premium in the private and alternative credit market. It will do this by allocating across asset classes based on market conditions, opportunity sets, and liquidity guidelines.
The strategy aims to limit volatility and maintain a low sensitivity to interest rate movements. The portfolio will invest in floating rate investments, seeking to generate high levels of stable, predictable and immediate income, and targeting a net double-digit return.
Designed for the private wealth segment, the new strategy combines AXA IM Alts’ private and alternative credit capabilities into a single global diversified strategy with a European focus.
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AXA IM Alts has a team of more than 160 investment professionals working across private debt and alternative credit, where it manages over €93bn in AUM.
The firm said that private and alternative credit is growing in two main areas: direct lending and asset-backed finance.
The group’s global head of alternative credit, Christophe Fritsch (pictured), said: “Private credit is a vital engine to finance our economy, be it through banks or non-bank lenders. The opportunity for investors today is the ability to access these loans that finance all areas of the economy.”
Florence Dard, global head of client group at Alts at AXA IM, added: “This innovative launch provides access to our top private credit strategies within a single, streamlined portfolio.
“It offers private wealth investors the opportunity to allocate capital into direct lending as well as asset-backed finance, a natural complement to direct lending that has gained significant traction among institutional investors over the past decade.”
This story was written by our sister title, Portfolio Adviser
