PIMCO has announced the launch of the PIMCO Diversified Private Credit fund (DPC Fund), an evergreen private credit strategy focused on multi-sector private lending.
The DPC Fund is structured as a Luxembourg domiciled SCA, qualifying as a UCI Part II Fund[1]. It will be managed by a seasoned PIMCO investment committee, with an average of 22 years of experience in multi-sector private lending, including Dan Ivascyn, Managing Director and Group Investment Officer, and Managing Directors and Portfolio Managers Kristofer Kraus and Mathieu Clavel.
PIMCO’s semi-liquid DPC Fund intends to provide wealth investors[2] across Europe[3] with an opportunity set across a diverse investment universe, encompassing private loans secured by hard assets, residential mortgages, consumer credit, corporate credit, and commercial real estate loans. Loans secured by hard assets include consumer-related credit (such as auto, equipment or residential loans), non-consumer-related credit (including aviation finance and data infrastructure), and residential mortgages.
The DPC Fund will employ a diversified, relative value approach across these assets, with the aim of constructing a downside-protected portfolio that can generate both income and long-term capital appreciation.
Christian Stracke, President and Global Head of Credit Research at PIMCO, said:
“The rapid growth of private markets is creating dynamics similar to those that we have found structural alpha in across public markets over the past 50 years. The opportunity in private credit lies in asset-based lending, real estate debt and flexible and value-oriented investment strategies.
“The DPC Fund will provide wealth investors access to a comprehensive range of asset classes, along with PIMCO’s time-tested, alternative credit and private strategies platform. This launch marks an important step in the evolution of our semi-liquid, income-oriented solutions, providing investors with a unique, holistic approach to private credit. We are proud to be bringing this exciting evergreen strategy to the European wealth market.“
The Strategy sits with its $191 billion Alternative platform, which includes $162 billion in assets under management across alternative credit & private strategies.
[1] – The DPC Fund will be an alternative Investment fund for the purposes of Directive 2011/61/EU and may not be available to investors in all European Economic Area (“EEA”) Member States or to investors in jurisdictions based outside of the EEA.
[2] – In the EEA, the Fund is available for investment by Professional Investors (as defined in Directive 2014/65/EU) and any other investors permitted to invest in an alternative investment fund under the local law of each EEA Member State. It is not available for investment by Retail Clients. In Switzerland, the Fund is available for investment by Qualified Investors (as defined in the Swiss Collective Investment Schemes Act). In the United Kingdom, the Fund is available for investment by Professional Investors (as defined in the FCA Handbook).
[3] – As at the date of this communication, the Fund is registered for marketing under the relevant provisions of Directive 2011/65/EU in: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Portugal, Romania, Spain and Sweden. The Fund is also registered for marketing in the UK under Regulation 59 of the Alternative Investment Fund Managers Regulations.
