ABERDEEN STANDARD INVESTMENTS LAUNCHES MULTI-SECTOR PRIVATE CREDIT FUND FOR UK DB PENSION SCHEMES

Aberdeen Standard Investments (ASI) has launched the Multi-Sector Private Credit (MSPC) Fund, an open-ended, diversified private credit solution for UK institutional investors. MSPC is designed to generate attractive levels of income by investing in a diversified portfolio of predominantly investment grade private and alternative credit assets.

The fund has £138m in commitments to date, with capital provided by a number of public and corporate pension schemes in the UK. The investors were attracted by the potential for better yields, relative to public corporate bonds, as well as the improved risk profile owing to portfolio diversification and, at the asset level, high quality security and robust covenants.

This diversified offering provides investors with access to multiple areas of private credit through a simple and integrated offering. The portfolio will invest in a wide range of sectors, including commercial real estate debt, infrastructure debt, private corporate debt and structured credit, amongst other areas. The sector allocation of MSPC will be flexibly managed over time, capitalising on the evolving opportunity set.

MSPC’s evergreen,  open-ended nature provides flexibility to investors to adjust their exposure over time, and offers liquidity options to DB pension schemes that are considering buy-out.   

Barry Fricke, Global Head of Product – Private Markets, Aberdeen Standard Investments, commented: "MSPC can offer UK DB pension schemes an alternative source of reliable income, while aiming to capture an illiquidity premium. We believe this is one of the first UK funds to allow an open-ended structure for this asset class; providing liquidity options for DB schemes that are considering buy-out and allowing schemes with a longer-term horizon to remain fully invested.”

Matt Hopson, Strategic Investment Manager, London Borough of Hammersmith and Fulham, added:
“With an attractive yield and risk profile, private credit was an important addition to our portfolio. The Multi-Sector approach from Aberdeen Standard Investments allows us to access to a broad range of assets through a single solution. The integration of environmental, social and governance considerations throughout the portfolio, and the anticipated exposure to renewable energy, were important factors for us.”

The fund draws on the combined strengths of the ASI Fixed Income team, which manages over £120bn  of assets, and the Private Markets and Real Estate team, representing over £55bn of assets. ASI’s wide-spanning Private Credit business (which includes infrastructure debt, commercial real estate debt, private corporate debt, fund finance, leveraged loans and structured credit), which has over £8bn in AUM, is well positioned to provide tailored solutions to clients’ unique long-term needs*.

Ends

Media enquiries 
Debbie Cowe
Global Media Manager
+44 (0) 7711 774017
Debbie.cowe@aberdeenstandard.com


Notes to editors

• Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £455.6 billion* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest.  (*as of 30 June 2020)
• *AUM figures as of 30 June 2020, and include invested as well as committed capital.
• We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
• Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange. 
• You can access the Aberdeen Standard Investments media centre here: https://www.aberdeenstandard.com/news-and-media

Important Information

For Professional Investors only
The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested. Past performance is not a guide to future results. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. We recommend that you seek financial advice prior to making an investment decision.
  
The details contained here are for information purposes only and should not be considered as an offer, investment recommendation, or solicitation to deal in any investments or funds and does not constitute investment research, investment recommendation or investment advice in any jurisdiction. Any research or analysis used to derive, or in relation to, the above information has been procured by us for our own use, without taking into account the investment objectives, financial situation or particular needs of any specific investor, and may have been acted on for own purpose. No warranty is given as to the accuracy, adequacy or completeness of the information contained in this communication and no liability for errors or omissions in such information. Readers must make assessments to the relevance, accuracy and adequacies of the information contained in this communication and make independent investigations, as they may consider necessary or appropriate for the purpose of such assessments. Any opinion or estimate contained in this communication, are made on a general basis.   No information contained herein constitutes investment, tax, legal or any other advice, or an invitation to apply for securities in any jurisdiction where such an offer or invitation is unlawful, or in which the person making such an offer is not qualified to do so.
 
Issued in the United Kingdom (UK) by Aberdeen Asset Managers Limited, registered in Scotland (SC108419) at 10 Queen’s Terrace, Aberdeen, AB10 1XL, and Standard Life Investments Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL. Both companies are authorised and regulated in the UK by the Financial Conduct Authority.