SC Lowy has reportedly decided to accelerate its pivot towards private credit, an area “rich” with various opportunities in Asia and the Middle East, that will pave the way for the “gradual” wind down of its open-ended liquid Primary Investments Fund (PI).
Initially launched as SC Lowy’s inaugural fund, PI focused on liquid credit opportunities and market making activities in “public securities across the Asia-Pacific, Middle East, and European markets.”
The fund delivered cumulative returns exceeding “200% and generating total profits of USD 993 million.”
But evolving market conditions and a diminished opportunity set in the secondary loan market and high yield bonds have “prompted a reevaluation of the investment approach.”
Last year, the decision was reportedly made to transition to an interval fund that aligns closely with investor’s demand and the fast-growing opportunities SC Lowy is “capitalizing on through its various vintages of dedicated private credit and direct lending closed-end funds.”
As a result, SC Lowy will streamline its operations and “reallocate resources to a new interval fund that is set to launch in mid-2025.”
The interval fund is designed as an open-ended, evergreen structure that blends direct lending capabilities with “a smaller portion dedicated to tactical liquid credit investments.”
This semi-liquid fund will offer quarterly liquidity and potential annual dividends, “providing investors with consistent, performance-driven returns.”
Michel Lowy, co-founder and CEO of SC Lowy, commented:
“This strategic evolution underscores our commitment to delivering superior risk-adjusted returns while staying ahead of market shifts. By transitioning into an interval fund structure, we can embrace a more flexible investment approach that leverages both episodic dislocations in the liquid credit market and a robust pipeline of private direct lending opportunities.”
They added:
“This next chapter in SC Lowy’s journey highlights our proactive approach to evolving market dynamics and our unwavering commitment to our partners. With deep regional expertise and a focus on innovation, we are well-positioned to navigate complex markets and deliver tailored credit solutions that align with our partners’ long-term goals.”
The introduction of the interval fund reinforces SC Lowy’s reputation as a trusted partner for investors seeking “innovative and flexible private credit solutions.”
The firm’s focus and capabilities are tailored to meet investor demands, “positioning SC Lowy for continued success and delivering enhanced value to its stakeholders.”
