Union Bancaire Privée (UBP) has launched an active income fund in partnership with Partners Group.
The fund is aimed at providing professional investors with global exposure to private debt and credit markets.
It is co-managed by Partners Group’s private debt investment team and UBP’s global and absolute return fixed income team, who said that the strategy will employ a relative value approach to allocate capital across private and public debt asset classes and regions including investment grade, high yield, senior loan, mezzanine debt, real estate and infrastructure.
Explaining the partnership, Nicolas Faller, co-chief executive officer of UBP Asset Management told ‘Funds Europe’: “We have a strong track record in all quoted and listed fixed income but no expertise in private debt.”
He said the reverse was true of Partners Group, which specialises in private debt but lacks expertise in fixed income.
“I’ve been highly critical in the past of asset managers trying to do too many things and not very well. If we don’t have the capability we prefer to find the right partner,” said Faller.
A team from each firm will manage underlying sub-strategies based on its own individual philosophies and principles. In addition there is an investment committee comprising both UBP and Partners Group investment professionals responsible for allocation decisions between the sub-strategies, monitoring investment restrictions and managing liquidity.
The firms said that the aim of the fund was to provide clients with attractive risk-adjusted net returns and significant diversification relative to traditional investment approaches.
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