US-based First Eagle Investments and France-based Amundi, have launched a private credit sub-fund which aims to bring non-US professional investors access to First Eagle’s US private credit strategy through an evergreen structure and Amundi’s global distribution network.
First Eagle’s US private credit strategy seeks to invest primarily in the following, to US companies: directly originated first lien senior secured cash flow loans, directly originated asset-based loans, club loans, second lien loans and broadly syndicated loans and other debt securities.
The direct lending strategy is focused on US lower middle market companies with annual EBITDA of between USD5 and USD50 million.
The portfolio managers for the strategy include: Michelle Handy, Chief Investment Officer of Direct Lending; Robert Hickey, Chief Investment Officer of Tradable Credit; Larry Klaff, Head of Asset-Based Lending; and Garrett Stephen and Brian Murphy, Co-Heads of Origination.
“We are excited to partner with Amundi to bring access to First Eagle’s US private credit strategy to the global market,” said Michelle Handy, Chief Investment Officer of Direct Lending at First Eagle Alternative Credit.
“By leveraging our 15-year track record of managing direct lending portfolios across various market environments, 50-plus investment professionals and a unique focus on lower US middle market borrowers, we believe the sub-fund should resonate with professional investors globally, in our view.”
“The search for enhanced diversification, current income and additional sources of return is a common trend for a variety of professional investors, from institutions to wealth managers and HNWIs, who are increasingly shifting their allocation models. This is why we believe the launch of the Sub-Fund comes at an opportune time and offers a compelling investment opportunity for a wide range of investors in Europe, the Middle East and Asia,” said Fannie Wurtz, Head of Distribution & Wealth Division, Passive Business Line, Amundi.
