TwentyFour Asset Management LLP is set to become the latest investor to enter the burgeoning world of private credit, with a new Europe-focused fund launch planned for later this year.
(Bloomberg) — TwentyFour Asset Management LLP is set to become the latest investor to enter the burgeoning world of private credit, with a new Europe-focused fund launch planned for later this year.
The British money manager, which specializes in fixed income, will target a mid-sized fund and will look to provide capital in niche areas such as for non-bank mortgage lenders, said Douglas Charleston, a partner at the firm who will head the new fund.
“Our focus is more on the consumer side — securitized investment and the equivalent,” he told Bloomberg at the sidelines of a conference.
“Unlike other private credit players, we won’t be lending directly to private businesses — we will be financing assets.”
TwentyFour AM joins a rush to tap into a client base enthusiastic for the high returns that private credit provides.
Direct lending transactions typically have a floating rate coupon, which means returns are often in the double digits in the current higher-rate environment.
The private credit fund will be run out of the firm’s flagship asset-backed securities team that Charleston co-heads.
TwentyFour AM is a boutique of Swiss-based Vontobel Group and has £17.7 billion ($22.1 billion) of assets under management, according to its website.
Earlier this month, German lender Deutsche Bank AG said it would launch a new investment manager targeting private credit opportunities on behalf of institutional clients and high net worth investors.
Others moving into the asset class this year include JPMorgan Chase & Co. and Societe Generale SA.
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