US investment manager Neuberger Berman has launched the NB Asset-Based Credit Fund, its first interval fund, offering private credit solutions to individual investors.
The new fund will be managed by the firm’s specialty finance group, with a focus on generating a high-level of current income through an actively managed portfolio focused on short duration, asset-based credit investments.
The fund’s remit means it can invest in various sectors, including receivables lending, consumer, small business, and real asset sectors, as well as revenue-based loans and public asset-based securities.
Read more: Neuberger Berman gains securitised credit mandate from Railpen
The NB Asset-Based Credit Fund is structured as an interval fund and will offer its shares on a daily basis.
The firm said it offers low investment minimums, and limited quarterly liquidity opportunities via repurchase offers.
Neuberger noted that the asset-based credit market has grown to more than $5tn (£3.7tn), according to figures from Oliver Wyman, as traditional bank lenders continue to retrench from the market.
Individual investors are also increasing their allocations to alternative strategies, the firm said.
Read more: Fund managers making ‘decisive move’ into private credit
“We are excited to provide individual investors with investment opportunities that have historically been offered primarily to institutions,” said Peter Sterling, head of Neuberger Specialty Finance.
“We aim to deliver high current income that is uncorrelated to many other credit investments and diversification to portfolios across varying market environments, and the introduction of our first interval fund continues that goal.”
“The fund is launching at a critical moment as financial advisors are looking for diversified sources of credit returns, and Neuberger is well positioned to capitalise with a seasoned team whose deep industry network enables opportunities for attractive deal flow origination and structuring,” said Scott Kilgallen, managing director and head of North American intermediary at Neuberger.
Neuberger launched its specialty finance team in 2018 and it now manages over $4bn across more than 50 portfolio companies and various vehicles.
