Affiliates of Janus Henderson have joined forces with Privacore Capital and Victory Park Capital to introduce the Privacore VPC Asset Backed Credit Fund, known as AltsABF. This now marks the debut of what they describe as the inaugural interval fund dedicated to private asset-backed credit opportunities.
Aimed at broadening access for individual investors, including those in the private wealth sector, the fund has already attracted substantial backing, boasting more than $250 million in initial deployable capital from key supporters like CNO Financial Group and Corbin Capital Partners.
This seed funding, which factors in leverage, underscores strong confidence in the vehicle’s potential to deliver value in a evolving credit market.
Structured as a continuously offered, non-traded closed-end interval fund, AltsABF offers three share classes: Class I (ABFIX), Class D (ABFDX), and Class S (ABFSX).
Investors can expect quarterly opportunities to redeem shares at net asset value, with each period allowing for repurchases between 5% and 25% of outstanding shares.
However, it’s important to note that this isn’t a highly liquid option; redemptions depend on board approval, and full liquidity isn’t assured in any quarter.
The fund is distributed through Janus Henderson’s U.S. arm and administered by U.S. Bank Global Fund Services, positioning it as a long-term commitment suitable only for those comfortable with associated liquidity constraints.
At its core, AltsABF prioritizes generating ongoing income through investments in a varied array of private asset-backed credit assets.
These include loans, notes, and other instruments secured by tangible, financial, or revenue-generating collateral.
The strategy emphasizes diversification across different asset categories while employing stringent risk controls to navigate market uncertainties.
This approach taps into the growing appeal of private credit, which involves lending outside conventional banking channels, often to non-public entities.
Such investments can offer appealing risk-adjusted returns and lower correlation to traditional stocks and bonds, potentially smoothing out portfolio volatility.
Privacore Capital takes the lead as the fund’s primary adviser, handling daily operations and drawing on its expertise in crafting alternative products for wealth clients.
As a Janus Henderson affiliate, Privacore benefits from a team with decades of experience in alternatives, sales, and distribution.
Complementing this, Victory Park Capital acts as sub-adviser, overseeing portfolio construction, asset selection, and risk oversight.
Established in 2007, VPC has deployed over $11.6 billion across hundreds of deals, specializing in areas like small business finance, consumer lending, and real estate credit.
Its integration as a majority-owned Janus Henderson entity in 2024 enhances access to global resources, including Janus Henderson’s vast $65 billion in securitized assets under management.
Janus Henderson’s CEO, Ali Dibadj, highlighted it as an extension of their securitized expertise, noting the diversification benefits for clients seeking alternatives to direct lending.
Privacore’s CEO, Brendan Boyle, emphasized the partnership’s role in democratizing sophisticated credit strategies for income-oriented investors.
VPC’s co-founder Brendan Carroll pointed to asset-backed credit as a prime opportunity, now extended beyond institutions to a wider audience.
While promising, the fund carries inherent risks, including potential principal loss, credit defaults, and illiquidity of underlying assets.
Market stresses could hinder valuations or sales, and distributions aren’t guaranteed, possibly drawing from capital returns.
Prospective investors are urged to review the prospectus thoroughly, considering objectives and expenses. This innovation reflects a broader trend toward making institutional-grade private markets more inclusive, potentially reshaping how retail investors approach fixed income alternatives.