European private credit fund launched for Aussie investors
Multipartner asset manager Channel Capital has launched a European private credit fund for Australian wholesale investors.
The West Street European Private Credit Fund (AUD) is an open-ended Australian unit trust that accesses Goldman Sachs Asset Management’s European private credit strategy.
The Goldman Sachs Asset Management’s private credit business has over US$110 billion in assets under management across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies.
The specific West Street fund was introduced to offshore wealth markets in late 2023.
This fund aims to deliver risk-adjusted returns through exposure to directly originated senior secured debt with borrowers. The focus is on high-quality, mid- to large-cap companies with stable cash flows and leading market positions in recession-resilient industries, such as healthcare and software.
Channel Capital will offer the fund and provide all non-investment services, including responsible entity services, operations, client services, and distribution and marketing.
James Reynolds, global head of direct lending at Goldman Sachs Asset Management, said: “We have been an active investor in European private credit since 1996 and continue to see the market as a source of returns for investors.
“Australian investors are increasingly interested in private credit opportunities internationally and through this fund from Channel Capital, they will be able to access the direct lending markets in Europe for diversification.”
Luke Mandekic, co-head of distribution at Channel Capital, said: “Far from being a niche asset class, European private credit offers exposure to a deep pool of leading global businesses. Many large European companies within the portfolio generate a significant portion of their revenues from outside Europe, adding to portfolio diversification. The European private credit market is rapidly growing, driven by the demand for alternative financing sources, creating a dynamic environment for investors.”
The fund is expected to receive research ratings and broad platform access shortly, Channel Capital said.
The democratisation of private assets has been a clear investment theme of 2024. According to Natixis Investment Managers, 34 per cent of global investors have demonstrated interest in private investment opportunities as a service they want from their adviser.
Research from Hamilton Lane also found that 70 per cent of advisers plan to raise clients’ allocations to the asset class. Performance and diversification were cited as the top drivers for the surge in demand for this investment area.
AUTHOR
Laura Dew
Recommended for you
International equity ETFs have recorded their third consecutive month with net inflows above $1 billion, according to Betashares, for advisers looking to capture this growth in client portfolios.
For advisers considering their clients’ fixed income allocations, VanEck research has detailed which elements of fixed income and credit have performed the best since the start of 2024.
There is a role for advisers to include capital securities in portfolios to provide diversification within clients’ fixed income allocations, according to fund manager Wellington Management.
BlackRock’s iShares fixed income ETFs have reached US$1 trillion in assets under management across the globe, a year after the global bond ETF industry hit US$2 trillion.
