The asset management giant has been building out its alternatives and illiquid investments business over the past few years.
Amundi is enhancing its existing offering of alternative credit with the launch of a European leveraged loan fund intended for institutional investors.
The portfolio, the Amundi Leveraged Loans Europe 2018 fund, invests mainly in the universe of senior secured leveraged loans, issued for the financing of leveraged buy-outs or large-scale acquisitions.
European leveraged loan new issue volumes have exceeded that of European High Yield bond new issue volumes in both 2016 and 2017.
"We invest in both the primary and secondary markets with the aim of taking advantage of market opportunities, and we also seek diversification across both sectors and geographic regions in the portfolio. The objective of this active, diversified management is to generate regular returns with low volatility,” explains Thierry de Vergnes, Head of acquisition debt funds at Amundi.
The portfolio aims to deliver a return of around 4 per cent above Euribor until the fund’s maturity (6 to 8 years), while providing monthly liquidity.
Institutional investors are increasingly interested to allocate to alternative income plays, especially credit as part of a broader move against traditional fixed income.
Amundi’s private debt and leveraged loans teams manage €5bn and €3bn respectively,
The fund, which is marketed in France, Italy, Spain, Germany, Austria, the United Kingdom, the Netherlands, Luxembourg, Belgium, Denmark, Norway, Sweden and Finland, is targeting €300m in assets under management.