Press Release
Credit Suisse & Patrimonium launch corporate debt fund
With institutional investors in mind, Credit Suisse has set up a new fund that will invest in corporate loans structured by Credit Suisse and in which the bank itself will also invest. The fund will be managed by Patrimonium Asset Management AG, a Swiss asset manager specialized in alternative investments. A fund of this kind is so far unique in Switzerland.
Corporate loans are an attractive alternative asset class from the perspective of institutional investors, although they are difficult to access. This is mainly due to the complex processes surrounding the issuance, management, and monitoring of corporate loans. As the leading bank for entrepreneurs and a major issuer and structurer of corporate loans, Credit Suisse has a broad client base and in-depth knowledge of their financing needs.
The newly launched Private Credit Co-Investor Fund I offers institutional investors the opportunity to participate in Credit Suisse corporate loans, based on the selection made by independent asset manager Patrimonium. Credit Suisse issues the loans to companies in Switzerland and Western Europe. The client relationships with borrowers remain with Credit Suisse. From a Credit Suisse perspective, the fund offers an additional opportunity for the distribution of structured corporate debt in collaboration with an experienced partner. A fund of this kind is so far unique in Switzerland.
Robust Governance to Guarantee Fund’s Independence
The loans envisaged for the fund consist of senior loans and the borrowers concerned have a credit rating of BB to B-. The fund, and therefore its investors too, essentially participate in the same loans, including any collateral arrangements, as Credit Suisse. Patrimonium will in all cases undertake a detailed, independent credit analysis and will not be influenced by Credit Suisse when deciding which loans to invest in. Based in Lausanne and Zurich, the specialized alternative investment fund asset manager has many years of experience and outstanding professional expertise in the corporate loans area. Robust governance of the fund guarantees a clear division of roles, thereby fully safeguarding investors’ interests.
Attractive Investment Opportunity in Market for Corporate Loans
The structure of the fund gives institutional investors access to an otherwise illiquid alternative asset class. The investment objective is to achieve attractive returns in accordance with clearly defined portfolio guidelines. The target net return after deduction of costs (TER) is Libor plus 3.50 to 4.00 percent. The fund therefore offers institutional investors an attractive risk/return profile compared with other alternative investments – without the need to establish a separate credit and operational infrastructure. In addition, this investment opportunity gives investors a degree of protection against rising interest rates as the corporate loans are based on the Libor. The Private Credit Co-Investor Fund I is a closed-ended fund with a life of eight years. The subscription period begins in mid April and runs for four months.
