Invesco launches private credit ELTIF
Invesco has launched a private credit income fund investing in upper middle market loans, taking into account ESG considerations.
The Invesco European Upper Middle Market Income fund meets ELTIF 2.0 requirements, and is available in the UK and in regions across Europe to wealth and institutional clients.
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It invests in upper middle market, senior secured corporate loans, offering income at a lower correlation to traditional asset classes.
It is run by the European private credit team, which is led by Michael Craig, head of European senior loans. The team manages over €9bn in European loans and over the past seven years has deployed upwards of €19bn into European upper middle market companies.
Craig commented: “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, added: “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 Article 8 under SFDR.
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