EnCor joins forces with EMUN to launch a new fund focused on the fast-growing global Private Credit segment.
Macroeconomic changes are opening up new investment opportunitiesand Emun Investment Company is responding with the launch of a new open-ended Global Private Credit (GPC) mutual fund focused on Private Debt. The fund, with an initial capital of $28 million (CZK 650 million) from clients and shareholders of EMUN family office, theparent company, targets secured corporate credit in the Americas and Western Europe. Key capital support for the fund’s launch was provided by anchor institutional investor EnCor Asset Management, an investment company. The ambition is to manage at least $50 million in GPC and welcome additional external investors.
The new GPC fund combines assets focused on mid-sized and large companies operating in Developed Markets in the Americas and Western Europe. The fund’s strategy, which takes into account the current macroeconomic environment and allows for resilience to market fluctuations, is a key strength. This investment opportunity is designed for qualified Czech investors seeking global exposure to Private Credit. Denominated in US dollars, the fund can hedge currency risk for local investors with a koruna-denominated class providing greater stability. With a semi-liquid structure, it brings flexibility that is still rare in the Czech alternative investment market.
“Historically, this is a relatively safe asset class. Over the last twenty years, default rates have averaged between two and four per cent per year. In the case of the largest blue-chip global funds we invest with, it is even well below one per cent on average per year. We will tactically add to the fund’s portfolio with opportunities that have historically performed countercyclically and that have outperformed during periods of volatility,” explains Vojtech Zelezny, Portfolio Manager of Debt Strategies.
The fund’s strategy is designed with the expected economic developments over the coming years in mind, where low economic growth, higher inflation and higher interest rates are expected. These factors create ideal conditions for optimising returns in the secured credit segment. We see Private Debt in particular as an interesting addition to bond portfolios. This is due to more attractive credit spreads compared to publicly-traded bonds, whose spreads are currently close to historical lows,” says Leoš Jirman, Partner and CIO of EMUN, who has been active in capital markets for more than thirty years.
Lubor Zalman, Partner at EnCor Wealth Management (and former CEO of Raiffeisenbank) adds: “After the banking crisis in 2008, banks were punished by regulators by increasingly limiting their scope. But this opens up space for global funds that provide non-bank financing to companies. It is logical to make this financial innovation available to Czech investors now.”
The launch of this fund represents another step in the expansion of EMUN’s portfolio of alternative investments. The move follows, among other things, the launch of the EMUN Semi-liquid Global Private Equity (GPE) open-ended mutual fund, which is focused on global private equity. The GPE fund provides Czech investors with access to prestigious global asset managers and exclusive investment opportunities outside of the publicly-traded markets. The new fund thus further strengthens EMUN’s position as an innovator in alternative investing.
“We now want to repeat this success with our new fund, GPC. The dynamic growth of the GPE fund and the involvement of investors including private banks, led by Erste Private Banking, clearly shows the interest in global private markets. Private Debt is currently the fastest-growing segment in private markets globally. In addition, partnering with large institutional investors such as EnCor gives us the perfect opportunity to achieve the higher volumes required to invest with global leaders,” says Filip Savi, Partner and Portfolio Manager at EMUN responsible for investments in private markets.