The asset manager launched its direct lending business two years ago.
Hermes Investment Management has launched the Hermes European Direct Lending following on from the launch of a UK direct lending fund in 2016.
Also headed by Patrick Marshall, Hermes head of private debt & CLOs, the European focused direct lending fund aims to offer institutional investors access to stable, low-correlated returns from high-quality, senior-secured loans.
These loans are typically to middle-market businesses in the UK and Europe, with a focus on Scandinavia, Germany, Benelux and Ireland.
Senior-secured transactions are originated through co-lending partnerships with Danske Bank, DZ Bank and KBC Bank. This works in a similar manner to Hermes’ existing UK mid-market agreement in place with Royal Bank of Scotland.
Patrick Marshall, Head of Private Debt & CLOs, Hermes Investment Management, said: “The strength of our partnerships with Europe’s leading banks, combined with our own origination skills, sustain a strong pipeline of high-quality loans for our investors.
“By focusing the Fund on attractive, senior-secured loans in the mid-market space, we can ensure there are strong creditor protections in place. Our aim will be to consistently outperform for our investors by lending to quality, growing businesses on terms seeking capital preservation and yield capture.”
The UK's oldest and best-loved conference for fintech and alternative finance insiders returns for its sixth iteration at etc.venues. We'll showcase the best of the UK's digital banking, online lending and digital wealth sectors through a series of uniquely in-depth discussions and presentations. Open Banking will be in full flight, just over a year on from its launch, and will be a central theme at the event.