Zurich Insurance coverage Group has partnered with Pemberton Asset Administration to launch its first European Lengthy-Time period Funding Fund (ELTIF), centered on non-public debt.
The fund, which might be managed by non-public credit score supervisor Pemberton, will concentrate on direct lending to European mid-market firms.
It is going to be rolled out to Zurich’s particular person buyers and life insurance coverage clients throughout Europe this 12 months.
Learn extra: M&G’s non-public credit score ELTIF opens to wholesale shoppers throughout Europe
The Luxembourg-domiciled fund advantages from the revised ELTIF regime – dubbed ELTIF 2.0 – which makes it simpler for particular person buyers to entry non-public property, together with non-public debt.
After the preliminary ramp-up interval, the fund will provide month-to-month liquidity topic to sure situations.
“The launch of Zurich Personal Debt ELTIF marks an necessary milestone,” mentioned Stephan van Vliet, group chief funding officer at Zurich Insurance coverage Group.
“It displays Zurich’s ambition to open up our non-public market experience to our clients by way of modern, high-quality options managed by main asset managers.
Learn extra: New long-term funds set to democratise non-public credit score
“The introduction of personal asset options goals to extend the attractiveness of Zurich’s Life insurance coverage merchandise, improve funding outcomes for our clients and provide the chance to take a position like Zurich, by following our personal confirmed funding rules.”
The fund is a sub-fund of Zurich International Personal Asset Options and is meant to be the primary in a collection of personal market choices for Zurich’s clients.
Zurich mentioned that the portfolio will largely comply with its funding method and tips, with different Zurich entities investing into the identical technique and in the identical loans because the fund.
Learn extra: ELTIF 2.0 presents “fascinating alternatives” for personal credit score
“Personal credit score has regularly grown over latest years,” mentioned Symon Drake-Brockman, managing associate at Pemberton.
“Engaging risk-adjusted returns, portfolio diversification, and decrease volatility are a number of the key advantages of the asset class, which is interesting to an ever-broader variety of buyers. We’re happy to develop our partnership with Zurich and provide their clients entry to the advantages of this thrilling asset class.”
