First Eagle Investments has launched its first non-traded business development company (BDC) in partnership with iCapital.
The First Eagle Private Credit Fund will offer individual investors a pathway to directly originated, senior secured, first lien loans.
It is backed by First Eagle Alternative Credit’s $17bn (£13.3bn) platform, and targets the core and lower middle market, targeting a 10.2 per cent annualised distribution rate.
The fund focuses on middle market borrowers with annual EBITDA between $5m and $50m. The management team will invest primarily in directly originated cash flow loans, directly originated asset-based loans, and club deals.
Read more: T. Rowe Price puts private credit fund on iCapital
It is structured as a perpetual, non-exchange-traded BDC, and intends to provide investors with quarterly liquidity through a share repurchase program, at the discretion of the fund’s board of trustees.
“For US wealth clients seeking a differentiated source of current income and the potential for resilience across market cycles, the launch of the First Eagle Private Credit Fund comes at an opportune time,” said Frank Riccio, head of US wealth solutions sales and strategic relationships at First Eagle.
“As a leading provider of US middle market financing solutions, First Eagle Alternative Credit has a long track record of success in direct lending, and I believe its long tenured, highly experienced team is well positioned to harness the diverse opportunities in the space for individual investors.”
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“We have been managing direct lending portfolios across various market environments on behalf of our institutional clients for more than 15 years, and the First Eagle Private Credit Fund is a natural extension of us delivering our capabilities to income-oriented investors,” said Michelle Handy, chief investment officer of direct lending at First Eagle Alternative Credit.
“With more than 50 investment professionals and a unique focus on core and lower middle market borrowers, we believe the attributes of the fund should resonate with a range of investors globally.”
Read more: Blackstone to sell First Eagle Investment Management
