Invesco has launched a European Long-Term Investment Fund (ELTIF) aimed at institutional and wealth investors seeking exposure to private credit.
The global asset manager said the ELTIF will invest in a portfolio of European upper mid-market, senior secured corporate loans and is Article 8-compliant under the Sustainable Finance Disclosure Regulation.
The European Upper Middle Market Income Fund is an evergreen vehicle structured under the ELTIF 2.0 framework. The updated regulation is designed to improve flexibility and distribution to both retail and professional investors, including by broadening the range of eligible assets, such as private credit, and reducing minimum investment thresholds.
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The fund will be managed by Michael Craig, head of European senior loans, within Invesco’s European private credit platform, which oversees €9bn (£7.8bn) of European loan assets.
“Investors have historically been nervous to lock away their capital in long-term structures,” Craig said. “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.”
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Invesco’s private credit team has deployed more than €19bn into European upper mid-market companies. Overall, the firm has $2.1tn (£1.6tn) of assets under management globally.
“European private credit strategies are well established for institutional clients but are a newer concept for much of the wealth channel,” said Oliver Bilal, head of Europe, the Middle East and Africa distribution at Invesco. “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.”
