Amundi has held a first close of a joint venture fund that will support SMEs and mid-cap companies.
The Amundi LCL Leveraged Midcap Loans Fund closed at €130 million and has a target of €250 million. The vehicle was launched in partnership with French bank LCL and will target acquisition finance opportunities, aiming to invest approximately 80 percent of its capital in France. The fund is available to professional investors only.
The fund aims to make 30 transactions to support SMEs and mid-cap companies making acquisitions and will target a return of between 4 percent and 4.2 percent above three-month Euribor. The fund will benefit from LCL’s sourcing capabilities, with Amundi saying the bank is the biggest provider of loans for acquisitions up to €250 million in France.
LCL has also invested in the fund to ensure alignment of interest with other investors.
The fund will invest exclusively in euros in senior positions and benefiting from guarantees on the assets of the companies it finances.
Pedro Arias, head of real and alternative assets at Amundi, said: “In an evolving private debt market access to quality assets on a diversified basis, as well as the ability to deploy capital quickly whilst remaining selective are the key factors for success and differentiation. Created using the expertise of both LCL and Amundi, this fund has been designed to respond to investor demand.”
LCL said that, in light of increasing disintermediation in lending markets, it wished to capitalise on its position by extending support for its SME clients.