Investcorp closes performing credit fund at €318m

The vehicle hopes to acquire undervalued performing loans as a result of the coronavirus pandemic.

Investcorp has raised €318 million for a European performing loan fund, beating its initial target.

The Mount Row (Levered) Credit Fund held its final close above its €300 million target and expects to benefit from market dislocation as a result of the coronavirus pandemic.

Investcorp said the vehicle attracted both new and existing investors including institutional investors, family offices and private clients from Europe, Asia and the Gulf states.

The fund aims to construct a diverse portfolio of performing large-cap European secured loans focusing on the largest and most liquid European issuers with an average EBITDA of more than €200 million.

The vehicle is already 35 percent deployed and is being constructed with defensive characteristics. It will focus on businesses that Investcorp believes are less likely to be impacted by Covid-19 and is acquiring high performing loans at discounted levels due to the ongoing crisis caused by the virus.

Jeremy Ghose, global head of Investcorp Credit Management, said: “The loan market has dislocated and performing senior secured loans are trading at levels not experienced since the Global Financial Crisis in 2008. We believe that these conditions have created attractive investment opportunities that we are strongly positioned to capitalise on”.

Investcorp added that while the current environment is challenging for investors, it generates opportunities for those who are able to identify attractive but undervalued assets.