Invesco has launched the European Upper Middle Market Income Fund, a private credit strategy structured under the Eltif 2.0 framework and available to both institutional and wealth clients.
The fund is focused on generating income by lending to established, upper mid-sized companies across Europe, spreading risk across a mix of senior secured loans.
The fund is set up as an evergreen vehicle, allowing investors to add capital each month and request redemptions quarterly. It follows the updated ELTIF 2.0 rules, which are designed to make private market investing more accessible while still keeping safeguards around diversification, liquidity and investor protection.
Run by Invesco’s European private credit team under Michael Craig, the asset manager said it offers investors a way to access private credit that behaves differently from public markets, with the potential for steadier income than more liquid debt options.
The fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), in which Articles 6, 8, and 9 classify funds based on their approach to sustainability. Article 8 funds, often referred to as “light green” funds, promote environmental and social characteristics but do not have sustainability as their core objective. These funds include ESG factors in their investment decisions, though they may still invest in companies without high sustainability standards.
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At launch, the fund is passported for distribution in Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain and Sweden, with additional distribution in the UK and Switzerland.
Michael Craig, head of European senior loans at Invesco, said: “Investors have historically been nervous to lock away their capital in long-term structures. This fund addresses this concern through a competitive cost structure for a flexible, semi-liquid product that opens up the investment opportunity to a wider client base. The loans market has evolved and now benefits from more flexible investment strategies which can provide an attractive yield premium, while still ensuring consistent deployment of capital in evergreen structures. We believe this proposition complements investors’ existing equity and bond portfolios, offering attractive and stable income potential.”
