Global corporate credit specialist Muzinich & Co has partnered with Sumitomo Mitsui Banking Corporation (SMBC) to launch a European loan origination strategy joint venture, initially targeting €1.5bn (£1.3bn).
The new strategic partnership is being hailed by Muzinich as “a new step” in asset manager-bank partnerships, given its focus on the public broadly syndicated loan market, whereas traditional bank and asset management partnerships have typically invested in private credit.
The Muzinich Enhanced Loan Origination Strategy will offer investors access to a multi-currency financing structure, targeting a portfolio of high-quality senior secured loan investments provided to European corporate borrowers.
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It will draw on SMBC’s European origination network and structuring experience to directly invest in primarily BB/B-rated new issue European senior secured loans.
Muzinich said the strategy seeks to benefit from preferential access to primary deal flow in the syndicated loan market and will aim to deliver consistent quarterly high-income distributions.
The strategy will be managed by Torben Ronberg and Stuart Fuller, who are part of Muzinich’s syndicated loans investment team, which is supported by more than 120 global credit investment professionals.
“This is a new step in asset manager-bank partnerships, combining Muzinich’s investment expertise and strong track record in Europe, with the origination and structuring capability of SMBC as a top-tier bookrunner,” said Justin Muzinich, chief executive of Muzinich & Co.
“We believe this pairing, with access to primary deal flow, has the potential to earn risk-adjusted returns not available in the secondary market.”
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Muzinich & Co is a global institutional asset manager specialising in corporate credit across both public and private markets, and has over $41bn (£30.6bn) in assets under management.
“This joint venture is one of several new initiatives as we continue to broaden and deepen our leveraged finance and securitisation capabilities, marking our ongoing commitment to matching the evolving needs of investors with greater scale, structural flexibility and expertise,” added Ronberg, head of syndicated loans at Muzinich.
Earlier this month, SMBC formed a European credit partnership with Bain Capital to launch a new loan platform providing up to €1.5bn in senior secured credit to sponsor-backed firms across the continent.
