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M&G’s private credit ELTIF opens up to wholesale investors

Strategy was launched by the firm’s private markets business last November with an initial €500m committed


Pete Carvill

The M&G Corporate Credit Opportunities European long-term investment fund (ELTIF) has opened up to wholesale clients across the continent.

The strategy, which was launched by the firm’s private markets business last November with an initial €500m committed, had reportedly attracted €726m by the end of last month.

“The M&G Corporate Credit Opportunities European Long-Term Investment Fund aims to enable wider access to private debt instruments for investors seeking attractive returns, appropriate liquidity and the scope to respond flexibly to changing market conditions,” the firm’s latest results stated.

When the fund was first released, M&G said: “Private credit can offer investors diversification from public markets, protection against duration given its largely floating rate nature and reliable streams of income historically capable of performing through economic cycles.”

‘Crucial amendments’

The news comes in the same week Michael George, the lead portfolio manager on the ELTIF product, wrote a client note arguing the European Community’s amendments to these vehicles were “crucial” in unlocking private market strategies for more investors.

According to Delano, which originally reported the story, the note looked at the EC’s initiative to refine the regulatory framework for ELTIFs by proposing several amendments aimed at enhancing liquidity requirements, notice periods and cost disclosures.

This proposal, wrote Geroge, submitted to the European Securities and Markets Authorities, had piqued the interest of various market participants, signalling a potential shift in the private market investment strategies landscape across Europe.