ECM launches senior secured fund

Wells Fargo owned ECM Asset Management has launched a senior secured fund that will invest in loans and bonds.

It is the first time the manager has managed the two asset classes together in a single fund.

The portfolio will focus on northern non-peripheral Europe, but has a mandate to invest more widely as appropriate. The manager believes that focusing on the senior debt, which historically has offered high recovery rates in Europe, will be a key driver of investor returns.

Lead manager will be ECM head of loans Torben Ronberg, with Andre Mazzella, senior high yield manager as co-lead.

The market opportunity is being driven by reduced bank activity and collateralised loan obligation activity in the region. This is expected to enable the fund to take part in new issues, whether in loan or bond form. Investments will also be made in the secondary market for loans and bonds.

The manager is targeting a fund size of $500m, with investments held by a Luxembourg corporate entity.

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