The Private Debt’s success is supported by a strong value proposal with portfolio diversification, reliable income streams, attractive risk-adjusted returns, and low volatility. Investors also appreciate the embedded option over traditional liquid credit – such as the ability to restructure pricing or terms, the floating rates, the ability to repossess hard assets if needs be, and the option to exit at par. Today, there is an abundant capital available on the private debt market that calls for stringent deal/asset selectivity, with a focus on safer strategies, more senior, more secured, and in asset-based financing. Diversification in geography and sector are necessary, together with investing at the top of the capital structure, where risk-adjusted returns are the most attractive.
The credit continuum of Europe's first Fixed Income platform
launch of the first fund
Amundi Private Debt is a leading player in senior corporate private debt financing in the Eurozone mid-market segment. Our funds give investors the opportunity to contribute to the senior financing of unlisted mid-sized companies and thus to get exposure to diversifying assets that offer more attractive yields than those of the traditional bond market. At the same time, our products enable unlisted mid-sized companies to expand their sources of financing beyond bank loans, over the long term (generally seven years), and with repayment at maturity.
Thanks to our many partnerships with leading European investment banks and our considerable fund-raising ability, we enjoy first-hand access to unlisted mid-sized companies in the Eurozone, and we are involved in virtually all private issuances which are eligible to our funds. Since its launch in 2012, Amundi Private Debt has accordingly raised and invested close to €8 billion through three generations of funds and 170 transactions in the Eurozone, with a focus in France. Over the past years, around 20 transactions per annum were carried out.
The team, made up of highly experienced corporate finance professionals, follows a very selective investment process (7% hit ratio) based on an in-depth analysis of the company’s credit quality, the deal structure and the contractual documentation. This rigorous investment process also incorporates ESG criteria. We finance various business projects (investment, external growth, refinancing, etc.) and then support the issuer over the entire lending period, adjusting the documentation where necessary.
Our offer is aimed at European professional investors seeking to diversify their sources of return through closed ended funds and dedicated accounts.
Over the last years, Amundi's range of private debt solutions has expanded from its core expertise of senior corporate debt to include new areas of private lending:
- Launch in 2017 of innovative private debt financings for real assets in the Italian agrifood sector, mainly backed by ham, wine and Parmesan assets.
- Launch in 2018 of a leveraged loans investment program focusing on broadly syndicated loans issued for large senior secured LBOs in Europe.
- Launch in 2018 of a commercial real estate loans investment program offering a diversified exposure to the Eurozone senior real estate debt market. The loans are mainly backed by core+ underlying real estate assets. This programs benefits from a particularly favourable Solvency 2 treatment.
How best to integrate ESG at the core of our investment processes?
ESG has been at the heart of our investment processes for corportate private debt funds since 2014. Integrating ESG into private debt is part of Amundi’s strategy to be a leading asset manager in responsible investing.
Our corporate private debt team has two objectives, namely to reduce certain risk factors in our portfolios, and to support companies’ efforts to improve their ESG practices.
But how are ESG criteria integrated within the investment and tracking processes? And how does this translate in to practical terms?
Watch the video to find out more on how responsible investing is playing an increasingly important role in our corporate private debt team’s investment processes today.
Discover our assets
Investment Insights Blue Paper - Private Debt
Responsible Investment Charter - Private Debt
Preqin Insight - Private Debt
1. Source: Amundi figures as of December 31, 2020.
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