Legal & General Investment Management ('LGIM'), one of Europe's largest asset managers and a major global investor, launches a new Short-Term Alternative Finance Fund ('the Fund') which will sit on a newly launched RAIF platform (a Luxembourg domiciled umbrella fund platform), in response to growing interest from investors.

The Luxembourg-based fund will invest in a portfolio of sub-1 year private credit assets, offering investors a strategic alternative to cash and other short-dated credit alternatives. The strategy will target attractive yields and low volatility, with an average investment grade rating.

Types of short-dated alternative finance the Fund could invest in include capital call facilities, supply chain finance, trade receivables and asset-backed financing. The Fund will target a wide range of institutional investors, most notably insurance companies, pension schemes, endowments and family offices.

Launched in 2021, LGIM's first Short-Term Alternative Finance strategy, now manages over £1bn across short-dated strategies on behalf of a range of clients and allows third party investors to invest alongside the Legal & General Group.

Following a growing demand for credit facilities from alternative investment funds and large corporates, meaning banks can no longer service these companies alone, LGIM has developed trusted relationships with a number of global banks and other financial intermediaries to source opportunities.

All transactions for the fund are underwritten by LGIM's Alternative Debt investment team, led by Matthew Taylor, with Sam Jones acting as joint fund manager.

Attachments

  • Original Link
  • Permalink

Disclaimer

Legal & General Group plc published this content on 03 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 April 2024 16:24:18 UTC.