Amundi launches private debt impact fund with investment commitments of €650 million
Amundi, the leading European asset manager, has launched the fourth vintage of its core private debt strategy, Amundi Senior Impact Debt IV. This fund is dedicated to financing mid-caps in France and Europe with proven pre-Covid-19 performance and resilience and has already raised €650 million in commitments from longstanding investors.
Building on the success of its predecessor, Amundi Senior Debt III, which raised €915 million 1, this new fund follows the same strategy by offering investors diversified exposure to the private senior corporate debt market. Classified as article 8 under SFDR 2, the strategy will be focusing on impact financing with an incentive for companies to reach their ESG objectives as defined when investing.
Intended exclusively for institutional investors, the Amundi Senior Impact Debt IV fund will be invested solely in Euros in senior private debt of about 40 companies, across various business sectors 3 in the European Union. It offers long-term financing, of €10 to 100 million each, to support midcaps through the business recovery and their expansion plans and associated challenges, such as relocation of strategic production activities to Europe, support for the environmental transition, and adaptation to new modes of consumption.
In addition to the traditional financial covenants, most financings will be featuring extra financial or impact covenants. Those will be designed with the company’s management in order to define relevant improvement axes for each company (carbon footprint reduction, job creation, education and training, governance…). These impact covenants will allow companies to adjust, upward or downward, their financing costs.
With €8 billion invested in more than 180 companies since 2012 1, Amundi Private Debt is a leading player with a proven track record that enjoys unrivalled access to French and European midcaps (+250 opportunities per year) thanks to an established network of business relationships and successful transactions. These companies undergo a rigorous selection process based on both financial and extra-financial criteria, in line with Amundi's ESG 4 policy, and are supported throughout the investment process to improve their performance.
Thierry Vallière, Head of Private Debt at Amundi, said: "We launched the fourth edition of Amundi Senior Impact Debt IV with the same investment philosophy as its predecessors, which proved their merits during the recent health crisis. The fund will focus on pure senior debt, with a risk framework 5 consistent with the profile of each company, the systematic presence of financial covenants and a particular focus on ESG factors, with namely the integration of impact covenants for most financings as well as supporting companies with their ESG challenges. We are confident in our ability, demonstrated in each of the previous editions of the funds, to rapidly roll out and build diversified and resilient portfolios for our investors.”
Amundi Senior Impact Debt IV is a Luxembourg SICAV-RAIF, marketed exclusively to institutional investors in France, Germany, Austria, Belgium, Denmark, Spain, Italy, Luxembourg, Netherlands, Sweden, Norway and Finland.
This edition has a gross target IRR of 4.5% 6.
Amundi Senior Impact Debt IV has already raised €650m from long-term investors and continues to raise funds with an objective over €1 billion. The minimum investment amount is €3 million.
This material is solely for the attention of journalists and professionals of the press/media sector. The information contained herein, is given solely in order to provide journalists and professionals of the press/media sector with an overview of the fund and the use of same falls within their sole editorial independence, for which Amundi assumes no responsibility. For Professional Clients only. This document is being issued in the United Kingdom by Amundi (UK) Limited, 41 Lothbury, London EC2R 7HF, which is authorised and regulated by the Financial Conduct Authority (the “FCA”) under number 114503. This may be checked at https://register.fca.org.uk/ and details about the extent of regulation by the FCA are available on request. This document is only directed at persons who are Professional Clients (as defined in the FCA’s Handbook of Rules and Guidance), must not be distributed to the public and must not be relied or acted upon by any other persons.This material is solely for the attention of “Professional” investors as defined in Directive 2014/65/UE on markets in financial instruments or as the case may be in each local regulations. This document is not intended for citizens or residents of the United States of America or to any «U.S. Person» , as this term is defined in SEC Regulation S under the U.S. Securities Act of 1933 . This material is communicated solely for information purposes and neither constitutes an offer to buy, an investment advice nor a solicitation to sell a product. This material is neither a contract nor a commitment of any sort. The provided information is not guaranteed to be accurate, exhaustive or relevant: although it has been prepared based on sources that Amundi considers to be reliable it may be changed without notice. The information contained in this material shall not be copied, reproduced, modified, translated or distributed without the prior written approval of Amundi, to any third person or entity in any country or jurisdiction which would subject Amundi or any of its products, to any registration requirements within these jurisdictions or where it might be considered as unlawful. There are risks associated to investments in the financial products. Past performance is not a guarantee or a reliable indicator for current or future performance and returns. The value of, and any income from, an investment in the product(s) can decrease as well as increase. The financial products are not capital or performance guaranteed. It is therefore possible that investors will not get back the amount they originally invested. All potential investors should seek the advice of their legal and/or tax counsel or their financial advisor prior to any investment decision in order to determine the suitability of any investment before making any commitment or investment and should not only consider this material alone to make investment decisions. Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained on this page. Amundi can in no way be held responsible for any decision or investment made on the basis of this information.This material has not been reviewed by any regulatory authority and no regulatory authority will take responsibility for the financial accuracy or any provision or opinion expressed in this document.
1 Amundi data at 30/06/21
2 Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector.
3 Excluding financial institutions and insurance companies
4 You can consult the ESG Charter of Amundi Private Debt by clicking here: https://www.amundi.fr/fr_instit/Expertises/Actifs-Reels-Alternatifs/Dette-Privee
5 Such as credit and liquidity risks.
6 All investments involve the risk of loss of the capital invested. There is no guarantee that this objective will be achieved. Gross returns will be impacted by various charges.
Amundi, the leading European asset manager, ranking among the top 10 global players 1, offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets.
With its six international investment hubs 2, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 4,800 employees in more than 35 countries. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages nearly €1.800 trillion of assets 3.
Amundi Real Assets brings together a complete range of capabilities in real estate, private debt, private equity and infrastructure. Drawing on decades of experience in private markets, Amundi facilitates access to real assets for institutional and retail investors. With nearly €60 billion in assets under management 9 invested in nearly 2,000 assets in 13 European countries, the business line is supported by 220 professionals in three main investment hubs in Paris, London and Milan. Find out more on real-assets.amundi.com.
1 Source: IPE “Top 500 Asset Managers” published in June 2021, based on assets under management as at 31/12/2020
2 Boston, Dublin, London, Milan, Paris and Tokyo
3 Amundi data as of 30/06/2021
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