TwentyFour Asset Management, the London-based specialist fixed income boutique of Vontobel, has expanded its offering with the launch of a new asset-backed finance (ABF) fund.
Managed by TwentyFour’s asset-backed securities (ABS) team, the fund has reportedly been launched in response to “growing client demand for diversified private credit solutions.”
As noted in the announcement from the company, TwentyFour’s new offering will invest primarily in “a range of consumer and corporate asset portfolios across Europe’s resilient and conservative market, accessing the assets either through acquisition, partnerships or structured exposures so as not to limit its potential universe.”
Douglas Charleston, Co-Head of ABS at TwentyFour Asset Management remarked:
“With regulatory pressure forcing banks to reconsider strategies across a range of traditional lending activities, private credit investors have an opportunity to work alongside and not compete with banks. Through ABF, investors can target attractive levels of income and total return at a premium to more widely allocated parts of private credit such as direct lending, and Europe is the ideal hunting ground. The region’s consumer lending markets are highly regulated and homogenous, and it has a culture of more conservative risk appetite in corporate lending, both of which mean the credit performance of European assets has historically been better than US equivalents.”
Alistair Wilson, Head of Sales at TwentyFour Asset Management has shared:
“ABF is a compelling area of private credit where an investor’s relationships can be extremely valuable when sourcing and managing opportunities. TwentyFour is a known presence in European structured finance, active in both public and private markets right across the risk spectrum since 2008. Our relationship with banks, specialist lenders and other loan originators and track record as a relevant, scalable and reliable partner creates a strong opportunity pipeline, and enable its managers to add value for investors by tailoring deals to their structure and risk preferences.”