Bahrain-based alternative investment manager Investcorp has secured $353 million in commitments for a new fund targetting businesses that are likely to be unscathed from the Covid-19 pandemic.
The Mount Row (Levered) Credit Fund will comprise large-cap European secured loans featuring the largest and most liquid European with average EBITDA of more than $225 million per annum.
According to Investcorp, the fund’s current portfolio has been assembled with defensive characteristics and, with Covid-19 in mind, is aiming to take advantage of market dislocations to acquire high-performing loans at discounted levels.
Approximately 35% of the fund’s capital has been deployed, focused on sectors and businesses that are expected to be less affected by Covid-19 and its economic implications.
“The loan market has dislocated and performing senior secured loans are trading at levels not experienced since the Global Financial Crisis (GFC) in 2008,” said Jeremy Ghose, global head of Investcorp Credit Management.
“We believe that these conditions have created attractive investment opportunities that we are strongly positioned to capitalise on with our talent, expertise and long track record of investing in European senior secured loans.
“The Fund is anticipated to benefit from both the current availability of deeply discounted performing loan assets with the potential to offer consistent returns, strong relative value and limited volatility,” he added.
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