Morgan Stanley Investment Management has launched a European Private Income Fund, a Part II SICAV that offers income-focused investors the opportunity to gain exposure to the European direct lending market in a semi-liquid structure.
The fund seeks to originate and underwrite a diverse portfolio of privately negotiated, senior secured term loans to European middle market companies with leading market positions, high barriers to entry and proven management teams, which position them to generate strong and stable free cash flows.
To provide enhanced liquidity for investors, the fund is expected to invest approximately 10% of its capital in broadly syndicated loans and bonds. Furthermore, the fund will promote certain environmental and/or social characteristics within the meaning of Article 8 of the EU SFDR framework.
“We’re pleased to offer our clients access to income opportunities within the European direct lending market, which we believe offers the prospect of attractive risk-adjusted returns,” said Mark Jochims, Head of European Private Credit at MSIM.
“EPIF’s highly selective investment philosophy provides investors exposure to a growing asset class, whilst leveraging the deep operational expertise provided by our wider Morgan Stanley Private Credit platform.”