Credit Opportunity Fund
A direct lending fund granting senior secured loans to profitable European mid-sized companies, with a quarterly cash income.
- Target return
- 8.2%/yr
- Min. entry
- €5,000
- Target size
- €300M
- Liquidity
- 5-year term
Strategy
The fund lends directly to profitable companies with €10M to €75M of operating profit, mostly to finance acquisitions and growth capex. Every loan is senior secured and backed by a private-equity sponsor.
It targets an 8.2% net annual return, paid as quarterly cash distributions from loan interest. Loans are floating-rate, so income rises with interest rates.
Senior secured
First claim on the borrower's assets.
Floating rate
Euribor + 5.5% average margin.
Quarterly income
Cash distributions from the first quarter.
Manager track record
Credit Opportunity Fund I · net value of €100
€141.30+41.3%
- Net IRR, Fund I
- +7.9%
- Loans granted
- 46
- Default rate
- 0.9%
- Recovery rate
- 86%
Predecessor fund, net of fees. Past performance is not a reliable indicator of future results.
Target portfolio
By sector (target)
- Business services30%
- Healthcare25%
- Software20%
- Industrial technology15%
- Consumer staples10%
By country (target)
- France35%
- Germany25%
- Benelux20%
- Nordics12%
- Spain & Italy8%
| Loan guidelines | Fund policy |
|---|---|
| Number of loans | 25 to 35 |
| Maximum per borrower | 5% of the fund |
| Average loan-to-value | 45% |
| Loan maturity | 5 to 7 years |
| Security | First-lien, with financial covenants |
Fees & terms
- Management fee
- 1% / year
- Performance fee
- 10% above 5% hurdle
- Platform fee (subscription)
- 1%
- Term
- 5 years (+1 optional)
- Liquidity
- Closed-ended, transferable after 12 months
- Distributions
- Quarterly
- NAV frequency
- Quarterly
- Domicile
- Luxembourg (RAIF)
- Token standard
- ERC-3643
- Custodian
- EU depositary bank
Risk
Summary risk indicator
Level 3 of 7
- Default riskA borrower may fail to repay part of its loan.
- Interest-rate riskIncome falls if Euribor drops.
- Liquidity riskNo redemptions during the 5-year term.
- Deployment riskUninvested cash earns less in the first months.
You may lose part or all of your investment. Read the risk disclosure and the Key Information Document before investing.