MAPFRE AM has launched its second private debt fund. MAPFRE Private Debt II FIL is an ‘evergreen’ private debt fund, without a fixed maturity and with an initial commitment of €250 million by MAPFRE Group entities, which in a second phase will be open to external investors with the aim of increasing its assets by approximately €75-90 million.
‘The fund invests its assets in six evergreen funds from six different managers, five of which are international and one domestic. After the summer we will think about increasing the size of the fund by two or three additional funds with between 25 and 30 million euros and incorporating new investors’, says Javier Lendines, general manager of MAPFRE AM.
The fund's target return is Euribor plus 250-300 basis points, which translates into expected returns of close to 5% in the first year. Geographically, approximately 90% of the capital will be allocated to European issues, while the remaining 10% will be invested in US or Asian corporate bonds. In terms of asset type, the portfolio will be broadly diversified, but with a bias towards senior secured loans.
This is the second hedge fund focused on private debt launched by the fund manager. The first, Mapfre Private Debt FIL, was created two years ago with a fundraising target of €350 million. This fund adopted a fund of funds strategy, investing in both closed-end vehicles and evergreen structures.
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