Invesco has announced the launch of its European Upper Middle Market Income Fund.
The new private credit fund aims to deliver high income by investing in a diversified portfolio of European upper middle market, senior secured corporate loans. It is designed for global investors who are increasingly looking for more innovative investment products that combine attractive yields with greater resilience through market cycles.
The Fund is managed by Invesco’s European private credit team, which is led by Michael Craig, Head of European Senior Loans. The firm writes that the strategy offers low correlation to traditional asset classes while offering a meaningful yield increase over more liquid debt strategies. The Fund also benefits from the vastly scalable nature of the lending opportunity in European upper middle market companies given the growth in the market, the firm says.
This evergreen strategy, offered under the European Long-Term Investment Fund (ELTIF) 2.0 regulation, provides access to illiquid private assets, while adhering to strict diversification, liquidity and investor protection rules. The Fund offers a monthly subscription with quarterly redemptions.
Michael Craig, Head of European Senior Loans at Invesco says: “Investors have historically been nervous to lock away their capital in long-term structures. This fund addresses this concern through a competitive cost structure for a flexible, semi-liquid product that opens up the investment opportunity to a wider client base. The loans market has evolved and now benefits from more flexible investment strategies which can provide an attractive yield premium, while still ensuring consistent deployment of capital in evergreen structures.
“We believe this proposition complements investors’ existing equity and bond portfolios, offering attractive and stable income potential.”
Oliver Bilal, Head of EMEA Distribution at Invesco, says: “European private credit strategies are well established for institutional clients but are a newer concept for much of the wealth channel. We’re excited to be able to offer clients a differentiated and cost-effective way to diversify their investment portfolio and improve access to private markets via our new product.
“It’s so important that our clients are able to preserve and grow wealth through different market cycles and we want to streamline the investor experience. We believe this product offers institutional quality without the high performance fee historically associated with other ELTIF structures.”
The Fund is available in the following regions across Europe.
Invesco European Upper Middle Market Income Fund
Passporting at launch into the following countries
Austria, Belgium, Czech Rep, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden
Distribution also in the following countries
UK and Switzerland
The Invesco Upper Middle Market Income Fund is an Article 8 fund, under SFDR classification, and aims to provide investors with a product that delivers yield and diversification, taking relevant ESG considerations into account.
