First Eagle Investments has launched its first non-traded enterprise improvement firm (BDC) in partnership with iCapital.
The First Eagle Non-public Credit score Fund will provide particular person buyers a pathway to straight originated, senior secured, first lien loans.
It’s backed by First Eagle Various Credit score’s $17bn (£13.3bn) platform, and targets the core and decrease center market, concentrating on a ten.2 per cent annualised distribution charge.
The fund focuses on center market debtors with annual EBITDA between $5m and $50m. The administration crew will make investments primarily in straight originated money stream loans, straight originated asset-based loans, and membership offers.
Learn extra: T. Rowe Value places non-public credit score fund on iCapital
It’s structured as a perpetual, non-exchange-traded BDC, and intends to supply buyers with quarterly liquidity by means of a share repurchase program, on the discretion of the fund’s board of trustees.
“For US wealth purchasers looking for a differentiated supply of present earnings and the potential for resilience throughout market cycles, the launch of the First Eagle Non-public Credit score Fund comes at an opportune time,” stated Frank Riccio, head of US wealth options gross sales and strategic relationships at First Eagle.
“As a number one supplier of US center market financing options, First Eagle Various Credit score has a protracted observe document of success in direct lending, and I imagine its lengthy tenured, extremely skilled crew is nicely positioned to harness the varied alternatives within the area for particular person buyers.”
Learn extra: Genstar Capital takes majority share in First Eagle Investments
“We’ve got been managing direct lending portfolios throughout varied market environments on behalf of our institutional purchasers for greater than 15 years, and the First Eagle Non-public Credit score Fund is a pure extension of us delivering our capabilities to income-oriented buyers,” stated Michelle Helpful, chief funding officer of direct lending at First Eagle Various Credit score.
“With greater than 50 funding professionals and a singular concentrate on core and decrease center market debtors, we imagine the attributes of the fund ought to resonate with a variety of buyers globally.”
Learn extra: Blackstone to promote First Eagle Funding Administration