Sun, Sep 20, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Prime Capital launches Liquid Alternatives Credit fund of funds

Tuesday, August 04, 2020
Opalesque Industry Update - Prime Capital AG, the independent asset manager and financial services provider that manages €17.2bn across multiple funds, is launching the Liquid Alternative Credit Fund, a new fund of funds, beginning of August.

This fund of funds will be pooling alternative credit strategies like trade finance and real estate bridge financing. It will invest in 15 to 20 underlying funds which are diversified globally with a target split of around 1/3 in North America, Europe and Rest-of-the-World, respectively.

"These strategies provide - similar to hedge funds - advantageous liquidity in contrast to other forms of private debt. They have strong levels of tangible collateral (e.g. ~LTV of up to 60% in the Real Estate space). At the same time they provide attractive expected returns, mostly due to underlying complexities. The universe is very fragmented, investments are hard to source and managers have a low level of institutionalisation. The individual funds require a very targeted and carefully coordinated selection", says Tilo Wendorff, managing director of the Absolute Return team at Prime Capital.

PCAM Liquid Alternative Credit will be launching in August 2020 and aims for an annual net return of 7-9% with a volatility of approx. 2%. It starts with an initial capital of approximately USD 30 million, based on the subscriptions from three seed investors.

"Our PCAM Liquid Alternative Credit offers institutional investors efficient access to a broad and robust strategy mix with clear return targets", explains Dr Werner Goricki, board member and CIO. "It makes a universe of small niche managers and strategies investable which would otherwise be very hard to invest. PCAM Liquid Alternative Credit is therefore suitable for stabilising and diversifying portfolios with very low beta to the traditional credit market. The fund is another example of our many years of successful expertise in putting together risk-return-optimized portfolios with alternative investments", Goricki added. Prime Capital's senior team combines 40+ years' experience and has a proven, excellent track-record in Alternative Credit and fund of funds management.

The New Liquid Alternative Credit Fund expands Prime Capital's absolute return offering and follows the highly successful PCAM Blue Chip and PCAM Select, both focusing on offshore hedge funds.

It has the legal form of a Luxembourg SICAV-RAIF, charges a management fee of 0.5% p.a. and carries a performance fee.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  2. Apollo jumps into impact investing with a new team[more]

    Laxman Pai, Opalesque Asia: Apollo Global Management is venturing into the world of impact investing, following some of its biggest peers in targeting funds dedicated to sustainability. The New York-based global alternative investment manager announced the leadership team for the new platform

  3. Investing: Empty hotels might just be next big short for hedge funds, Marshall Wace makes record bet against Lloyds, U.S. big tech dominates stock market after monster rally, leaving investors on edge, SoftBank plans to sell $14bn stake in telecom unit[more]

    Empty hotels might just be next big short for hedge funds From Bloomberg: Hedge funds and other short sellers are beginning to set their sights on a U.S. credit-derivatives index with outsized exposure to hotel debt as the pandemic sinks the hospitality industry into distress. The f

  4. PE/VC: Big private-equity firms are piling into tech deals, Private equity is a club and the ordinary investor is not invited, Private equity fees have become a rentier's bonanza[more]

    Big private-equity firms are piling into tech deals From Business Insider: Private-equity funds are dumping more money into technology companies, as the pandemic tanks sectors more reliant on in-person business. Enterprise software, long a private equity favorite, is getting even hotter

  5. ESG: How ESG data affects investors' fund choices: Morningstar, New challenges to the merits of ESG investing, Deciphering the trend: Will the real ESG contenders stand up[more]

    How ESG data affects investors' fund choices: Morningstar From Think Advisor: Advisors may wonder if it is important to present sustainable fund data to clients, especially during turbulent times. The answer: Not only will that information help investors choose funds, it also will edge