Chorus Capital, an alternative credit manager specialised in risk-sharing transactions with banks, has successfully concluded fundraising for Chorus Capital Credit Fund IV (the Fund).
In connection with this fundraising, the firm has gathered USD1.4 billion of capital commitments, well in excess of the Fund’s initial target of USD1 billion.
The Fund represents Chorus Capital’s largest commingled investment vehicle to date and one of the largest private credit funds raised in Europe since the start of the Covid-19 crisis. Fundraising was concluded in just over 12 months, with about 80 per cent of the Fund’s capital raised since the start of the pandemic. Whilst the Fund received strong support from existing limited partners, new investors represent about 70 per cent of its capital commitments. This further diversifies Chorus Capital’s high-quality institutional investor base of pension funds, insurance companies and family offices across Europe, North America and Asia.
Over 60 per cent invested already, the Fund allows Chorus Capital to further expand its scalable strategy of providing banks with capital relief through a hedge against losses on their core corporate loan portfolios. Although the loans remain on their balance sheets, capital relief is achieved through actual credit risk transfer, improving banks’ profitability and capacity for further lending to the economy. Risk-sharing is an effective, flexible capital management tool adopted by a fast-growing number of banks in Europe, and increasingly across North America and Asia.
Chorus Capital’s founder and CEO Gilles Marchesin says: “We are truly grateful for the support of our investors who have helped us significantly exceed our fundraising target in a relatively short period of time, against a challenging macro-economic backdrop. Ultimately, this success highlights investors’ appetite for our investment strategy. We are also looking forward to further developing our partnerships with banks across Europe and around the world. As economies emerge from the global pandemic, banks must ensure that they manage their capital efficiently for corporate clients and shareholders alike.”