Aberdeen Standard Investments launches multi-sector private credit fund for UK DB pension schemes
Aberdeen Standard Investments has launched the Multi-Sector Private Credit (MSPC) Fund, an open-ended, diversified private credit solution for UK institutional investors. MSPC is designed to generate attractive levels of income by investing in a diversified portfolio of predominantly investment grade private and alternative credit assets.
The fund has GBP138 million in commitments to date, with capital provided by a number of public and corporate pension schemes in the UK. The investors were attracted by the potential for better yields, relative to public corporate bonds, as well as the improved risk profile owing to portfolio diversification and, at the asset level, high quality security and robust covenants.
This diversified offering provides investors with access to multiple areas of private credit through a simple and integrated offering. The portfolio will invest in a wide range of sectors, including commercial real estate debt, infrastructure debt, private corporate debt and structured credit, amongst other areas. The sector allocation of MSPC will be flexibly managed over time, capitalising on the evolving opportunity set.
MSPC’s evergreen, open-ended nature gives investors the flexibility to adjust their exposure over time, and offers liquidity options to DB pension schemes that are considering buy-out.
Barry Fricke, global head of Product, Private Markets, at Aberdeen Standard Investments, comments: "MSPC can offer UK DB pension schemes an alternative source of reliable income, while aiming to capture an illiquidity premium. We believe this is one of the first UK funds to allow an open-ended structure for this asset class; providing liquidity options for DB schemes that are considering buy-out and allowing schemes with a longer-term horizon to remain fully invested.”
Matt Hopson, Strategic Investment Manager, London Borough of Hammersmith and Fulham, adds: “With an attractive yield and risk profile, private credit was an important addition to our portfolio. The Multi-Sector approach from Aberdeen Standard Investments allows us to access to a broad range of assets through a single solution. The integration of environmental, social and governance considerations throughout the portfolio, and the anticipated exposure to renewable energy, were important factors for us.”
The fund draws on the combined strengths of the ASI Fixed Income team, which manages over GBP120 billion of assets, and the Private Markets and Real Estate team, representing over GBP55 billion of assets.