Paris-based Tikehau Capital and insurer MACSF Group have launched a private debt solution for individual investors.
The product, Tikehau Financial Enterprises, will be exclusively available through MACSF’s RES Multisupport life insurance policy as part of its Libre profile starting in May 2021. It will allow private pension savers to gain exposure to private debt loans to French and European SMEs.
Tikehau Financial Enterprises is evergreen and unit-linked and will provide investors with liquidity in additional to loans to unlisted companies.
The fund has a dedicated liquid segment to enable withdrawals and its evergreen nature means redemptions can be offset with new subscriptions. In order to maximise yield, the fund will automatically reinvest repaid loans and interest paid via coupons will also be reinvested, which MACSF said will allow it to achieve average performance more than twice as high as the annual yield. It will also offer transparency with daily net asset valuation.
Antoine Flamarion, co-founder of Tikehau Capital, said: “Our conviction at Tikehau Capital has always been that the asset management sector should facilitate the directing of French savings to the financing of companies and the real economy. This necessity was accentuated by the covid-19 crisis, and with our long-term partner MACSF, we sought to give individual investors the opportunity to support French and European SMEs and thus finance the real economy.”
The news follows the launch of a dedicated product for defined contribution pension funds in the UK by MV Credit. With most defined contribution pension funds closed to new members, defined contribution and private pension schemes are seen as a potential new and growing source of investment for private markets managers. However, the liquidity needs and reporting demands of defined contribution schemes have presented challenges for providing them with access to private markets vehicles.