AXA IM Alts, a global leader in alternative investments, with €186 billion of assets under management[1], announces the launch of a diversified evergreen private credit strategy (the “Strategy”).
The new strategy will invest across the entire private credit spectrum, from direct lending to asset-backed finance (“ABF”), through cycle-tested investment strategies, managed by AXA IM Alts for more than 20 years. With a portfolio directly sourcing credit instruments, the Strategy aims to capture the yield premium in the private and alternative credit market by allocating across asset classes based on market conditions, opportunity sets, and liquidity guidelines.
This launch will be AXA IM Alts’ second evergreen private credit strategy available to individual investors, following the recent launch of an ELTIF 2.0 private credit fund[2] which focuses primarily on direct lending.
The Strategy aims to present a limited mark-to-market volatility due to the private nature of underlying investments and a low sensitivity to interest rate movements. The Strategy portfolio aims to invest in floating rate investments, whilst seeking to generate high levels of stable, predictable and immediate income, targeting a net double-digit return.
Designed for the private wealth segment, the Strategy combines AXA IM Alts’ private and alternative credit capabilities into a single global diversified strategy with a European focus, benefiting from its long-standing experience, recognized expertise, and substantial resources in private and alternative credit. This includes a team of 160+ dedicated investment professionals, and over €93 billion in assets under management[3] in private debt and alternative credit.
Private and alternative credit is a structurally growing market in two main areas: direct lending and ABF. While direct lending has developed in response to structural bank lending retrenchment, ABF has become a fundamental tool for banks to maintain their lending capabilities while shifting risk from their balance sheets. ABF is highly diverse and gives investors access to the full private credit market including residential mortgages, consumer debt, commercial real estate loans, infrastructure debt as well as specialty finance. By offering long-term investors access to banks’ high quality and diversified assets, ABF provides the ground to strengthen the financing of the economy, whilst diversifying investors’ portfolios with new cash-generating assets.
As a pioneer in both private and alternative markets investing and offering solutions to private wealth clients, AXA IM Alts currently manages c. €6 billion of assets under management[4] in evergreen private market strategies for private wealth investors. Completing its private debt offering, AXA IM Alts’ ambition is to continue the acceleration into the private wealth segment which has been already operating through real estate, infrastructure, and private equity funds.
Christophe Fritsch, Global Head of Alternative Credit at AXA IM Alts, commented: “Private credit is a vital engine to finance our economy, be it through banks or non-bank lenders. The opportunity for investors today is the ability to access these loans that finance all areas of the economy. With over 20 years of expertise in private debt and alternative credit, and managing today over €93 billion of assets, we have developed an investment approach centered on selectivity and diversification, that is particularly relevant in the investment solutions we can provide to private wealth investors.”
Florence Dard, Global Head of Client Group, Alts at AXA IM, commented: “This innovative launch provides access to our top private credit strategies within a single, streamlined portfolio. It offers private wealth investors the opportunity to allocate capital into direct lending as well as asset-backed finance, a natural complement to direct lending that has gained significant traction among institutional investors over the past decade.”
Capital at risk. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.
Source 1: AXA IM Alts unaudited data, as of 31 December 2024.
Source 2: The Fund is currently opened for subscriptions in France only, through insurance products.
Source 3 & 4: AXA IM Alts unaudited data, as of 31 December 2024.
