Candriam will manage 15% of the fund which is short-term liquid corporate credit and money market. Kartesia will handle the private credit complementary strategies which make 85% of the vehicle
Candriam, a global multi-asset manager for sustainabel and responsible investments that has resources worth 149 billion euros, and private capital firm Kartesia said they launched a Luxembourg-based Eltif for granting retail and private investors access to European lower mid-market private debt opportunities and supporting local communities (see here the press release).
Renato Guerriero, Deputy CEO of Candriam
Once the firms have completed the necessary filing procedures, the fund will be available in Italy, Austria, Belgium, Denmark, Finland, France, Germany, the Netherlands, Portugal, Spain, and Sweden. The product will allow to invest in the European companies of the lower mid-market segment that are facing limited financing options. The asset managers will diversify the loan portfolio across sectors and geographies while incorporating a sustainable approach. This allows for more careful deal selection, better downside protection and better risk-adjusted returns.
Kartesia and Candriam belong to US asset management giant New York Life Investment Management. This eltif will benefit of the firms’ competency in the sectors of private and liquid credit, Candriam distribution network and Kartesia experience and reputation as lower mid-market investor.
The product also offers a flexible solution with a semi-liquid product offering, a low entry fee and a simplified investment. It also benefits from the potential diversification effects offered by private credit, which has relatively low volatility and limited correlation with traditional asset classes.
Renato Guerriero, Candriam deputy ceo and Chief Sales & Distribution Officer, said: “Retail investors found difficult to access private markets, but ELTIF 2.0 will changes this situation. In the current interest rate environment, banks lend less money. There is a clear opportunity in the mid-lower market of European private debt. We are excited to offer an attractive solution with this new product. Candriam and Kartesia have more than 20 years of experience in private and liquid credit management with a focus on sustainable investments”.
Charles-Henri Clappier, Kartesia Head of KSO France & Business Development, added: “The launch of an ELTIF with a focus on private debt is key to broadening access to this established but growing asset class by a wider range of investors. We are pleased to provide investors with our expertise in the lower mid-market in Europe, combined with Candriam’s fund distribution and management capabilities. We are looking forward to strengthening our partnership with Candriam, under the aegis of New York Life, to continue supporting leading European SMEs in their growth and development plans”.
Kartesia already invested in the debt of Italian private equity deals such as November 2024 Argos Wityu acquisition of the majority of Italian food company Monviso from Capza, Cerea Capital II and Céréa Mezzanine (see here a previous post by BeBeez). BeBeez Private Data, the private capital database of BeBeez and FSI, monitors Kartesia and its Italian portfolio companies. Find out here how to subscribe for one month or one year or Click here for booking a demo videocall with BeBeez database manager.
