SC Lowy has accelerated its pivot in direction of personal credit score by asserting the launch of a brand new interval fund and the winding down of the agency’s inaugural funding fund.
The choice asset supervisor will launch its new interval fund in mid-2025, with the goal of capturing fast-growing personal credit score alternatives in high-growth areas such because the Center East and Asia.
The brand new fund can have an open-ended, evergreen construction that can stability direct lending and liquid credit score methods, the agency mentioned. It’s going to provide quarterly liquidity and the potential for annual dividends, with the goal of offering traders with constant, performance-driven returns.
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In the meantime, SC Lowy’s open-ended liquid Major Funding Fund will likely be step by step wound down. This fund centered on liquid credit score alternatives and market-making actions in public securities throughout the Asia-Pacific, Center East, and European markets. Throughout its lifetime, it delivered cumulative returns in extra of 200 per cent.
Nonetheless, the agency mentioned that “evolving market circumstances and a diminished alternative set within the secondary mortgage market and excessive yield bonds have prompted a re-evaluation of the funding strategy.”
Because of this, SC Lowy has opted to streamline its operations and reallocate sources to the brand new interval fund, whereas accelerating the corporate’s funding concentrate on personal credit score alternatives in Asia and the Center East.
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“This strategic evolution underscores our dedication to delivering superior risk-adjusted returns whereas staying forward of market shifts,” mentioned Michel Lowy, co-founder and chief government of SC Lowy.
“By transitioning into an interval fund construction, we are able to embrace a extra versatile funding strategy that leverages each episodic dislocations within the liquid credit score market and a strong pipeline of personal direct lending alternatives.
“This subsequent chapter in SC Lowy’s journey highlights our proactive strategy to evolving market dynamics and our unwavering dedication to our companions. With deep regional experience and a concentrate on innovation, we’re well-positioned to navigate advanced markets and ship tailor-made credit score options that align with our companions’ long-term targets.”
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