Pemberton Asset Management held the first close of its inaugural ERISA-compliant fund totaling $275 million.
Anchored by five new investors to the firm, the European Alternative Credit Fund will invest in first lien financings. The fund is also open to non-ERISA investors although its evergreen structure aims to meet the needs of U.S. multi-employer union and corporate defined benefit plans.
“We continue to believe private debt to be a highly appropriate asset class for pension funds given its low volatility and cash distributive nature,” said Scott Hamilton, managing director of North American business development at Pemberton, which has $20 billion in assets under management. “We are excited to be able to offer Multi-Employer Union and Corporate Defined Benefit plans an ERISA-compliant, low administrative burden, evergreen solution providing broad European alternative-credit exposure, particularly given the compelling relative value in terms of both yield and structurally cleaner credit.”
The fund will lean on the firm’s platform that spans three European middle-market lending strategies — senior loan, mid-market debt and strategic credit — as well as global NAV-finance and risk sharing/SRT offerings, for a risk-optimized, relative value-informed and highly diversified portfolio.
A few weeks ago, Pemberton launched its first European collateralized loan obligation (CLO), raising €357.1 million ($378 million).
Pemberton Managing Partner Symon Drake-Brockman added: “Over the past years we have grown from our origins in direct lending to a highly diversified, multi-strategy, alternative credit platform. The versatility of the platform and broad offering supports our ability to offer client-driven solutions across a range of risk-return profiles within a single fund such as our inaugural ERISA fund.”
