Endowus teams with CVC to bring European private credit to Asian investors

Endowus has entered into a collaboration with CVC to introduce a dedicated European private credit strategy for accredited and professional investors in Singapore and Hong Kong. The announcement was made by Fund Selector Asia. This new offering represents the first standalone private credit investment opportunity that Endowus has made available exclusively to its Asian clients.

Prior to this partnership, European direct lending options were only accessible as part of a broader portfolio. The structure of the strategy aims to offer enhanced accessibility compared to traditional closed-end private credit funds, while preserving the illiquid nature typically associated with this asset class, according to Endowus.

The partnership will enable investors to gain exposure to European borrowers, currencies, and economic cycles that differ from those underlying most of the private credit opportunities currently accessible to Asian investors. CVC, one of Europe's largest alternative asset managers and collateralised loan obligation managers, boasts over two decades of experience investing in European direct lending.

The firm manages assets worth €52 billion (approximately $58.3 billion). Its extensive network of local offices and connections with private equity sponsors and banks is anticipated to facilitate access to a wide array of European lending opportunities. Hugh Chung, Endowus' chief investment officer, commented that while the European direct lending market has presented significant opportunities, private wealth strategies have historically centered around the US.

Samuel Rhee, chairman and group chief investment officer at Endowus, explained that this collaboration would provide Endowus' high-net-worth clients with access to a unique source of risk-adjusted returns, while simultaneously allowing their portfolios to benefit from Europe's diverse markets and local dynamics.