3i launches cross-border fund

Investors will be able to access the US and European senior secured loan market through the open-ended $150m vehicle.

3i Group has launched an open-ended cross-border fund allowing institutional investors to access the US and European senior secured loan market, PDI has learned.

The 3i Global Floating Rate Income Fund will be worth $150 million at launch, of which 3i has committed $75 million from 3i Group’s capital.

The fund will focus on investing in a diverse portfolio of primarily senior secured floating rate corporate credit assets and will be jointly managed by the 3i Debt Management (3iDM) teams in London and New York. It also offers investors fortnightly liquidity and will report in net asset value (NAV) daily.

Jeremy Ghose, managing partner and 3iDM chief executive officer, commented in a statement: “In a market environment characterised by very low interest rates we think this fund is attractive to a wide variety of investors given its focus on income generation and capital preservation. Investors will be able to gain exposure to a compelling risk-adjusted investment opportunity through primarily senior secured floating rate loans across both Europe and the US within a single product.”

The launch of the fund marks a further step in 3iDM’s strategy to diversify into complementary products, Ghose added, following the first close of €250 million on its European Middle Market Fund in November 2014. The firm also manages a US Senior Loan Fund and US and European CLOs.

3iDM had 33 funds and total assets under management of around $11 billion, as at 31 March 2015.