MANAMA: Investcorp, announced that its Credit Management business held the final close of the Mount Row (Levered) Credit Fund (Mount Row or the Fund) with capital commitments of €318 million, exceeding its target of €300 million.
Through Mount Row, Investcorp Credit Management will aim to continue executing on its investment strategy to actively manage and construct a diverse portfolio of performing large-cap European secured loans. The Fund focuses on targeting the largest and most liquid European issuers with average EBITDA of more than €200 million per annum.
The Fund’s current portfolio has been assembled with defensive characteristics and knowledge of Covid-19 and seeks to take advantage of market dislocations to acquire high performing loans at discounted levels. Mount Row, which has already deployed approximately 35% of committed capital, focuses on sectors and businesses that Investcorp believes are less likely to be impacted by Covid-19 with the objective to deliver strong and consistent quarterly distributions.
“The loan market has dislocated and performing senior secured loans are trading at levels not experienced since the Global Financial Crisis (GFC) in 2008,” Jeremy Ghose, Global Head of Investcorp Credit Management, said.
“We believe that these conditions have created attractive investment opportunities that we are strongly positioned to capitalize 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. We are grateful to our longstanding and new investment partners for their support and we look forward to investing the fund in performing senior secured loans,” he added.
Mount Row attracted a broad and diverse group of existing and new global investors, including institutional investors, family offices and private clients across Europe, Asia and the Gulf.
“While the current market environment is challenging, it is also generating opportunities for highly skilled investors that can recognize potentially attractive and undervalued assets. We believe that the oversubscribed closing of Mount Row reflects the confidence our clients have in our Firm as well as the strength of our brand and standing in the investment community. We greatly appreciate the strong support from our existing and new investors,” Timothy Mattar, Investcorp’s Global Head of Distribution, said.
Investcorp’s Credit Management business has approximately $13 billion AUM and is among the largest leveraged loan credit managers in Europe with more than €7 billion in European AUM. Investcorp Credit Management’s investment team has managed European leveraged loan assets for more than 10 years and benefits from well-established access to the European credit market and an enhanced ability to secure deal allocations.
