SC Lowy has accelerated its pivot towards private credit by announcing the launch of a new interval fund and the winding down of the firm’s inaugural investment fund.
The alternative asset manager will launch its new interval fund in mid-2025, with the aim of capturing fast-growing private credit opportunities in high-growth regions such as the Middle East and Asia.
The new fund will have an open-ended, evergreen structure that will balance direct lending and liquid credit strategies, the firm said. It will offer quarterly liquidity and the potential for annual dividends, with the aim of providing investors with consistent, performance-driven returns.
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Meanwhile, SC Lowy’s open-ended liquid Primary Investment Fund will be gradually wound down. This fund focused on liquid credit opportunities and market-making activities in public securities across the Asia-Pacific, Middle East, and European markets. Across its lifetime, it delivered cumulative returns in excess of 200 per cent.
However, the firm said that “evolving market conditions and a diminished opportunity set in the secondary loan market and high yield bonds have prompted a re-evaluation of the investment approach.”
As a result, SC Lowy has opted to streamline its operations and reallocate resources to the new interval fund, while accelerating the company’s investment focus on private credit opportunities in Asia and the Middle East.
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“This strategic evolution underscores our commitment to delivering superior risk-adjusted returns while staying ahead of market shifts,” said Michel Lowy, co-founder and chief executive of SC Lowy.
“By transitioning into an interval fund structure, we can embrace a more flexible investment approach that leverages both episodic dislocations in the liquid credit market and a robust pipeline of private direct lending opportunities.
“This next chapter in SC Lowy’s journey highlights our proactive approach to evolving market dynamics and our unwavering commitment to our partners. With deep regional expertise and a focus on innovation, we are well-positioned to navigate complex markets and deliver tailored credit solutions that align with our partners’ long-term goals.”
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