LONDON--()--Babson Capital Management LLC and Babson Capital Europe Ltd. (together, “Babson Capital”), the global investment management firm known for its expertise in Senior Secured High Yield Credit, announces that it has raised in excess of $1.2 billion for its Dublin-domiciled Babson Capital Global Loan Fund in the last 18 months.
This takes the AUM of the open-ended High Yield Credit funds managed by Babson Capital, which launched in 2009 with the Babson Capital European Loan fund, to over $3 billion. This suite of funds offers investors ready access to Global, European or US strategies in Senior Secured Loans, Senior Secured Bonds and High Yield Bonds. Babson Capital’s total AUM in Global High Yield investments is approximately $27 billion*.
The Global Loan Fund, which takes advantage of Babson Capital’s large, integrated High Yield market presence in both European and US markets, seeks to maximise risk adjusted returns to investors through exploiting relative value across different geographies. Recent fund flows have been particularly strong from pension and insurance investors in the UK, Northern Europe and Australia who can access such strategies in local currency.
The apparent market opportunity in Global Loans is significant because:
- Loan spreads in the US and Europe are attractive and are expected to remain elevated due to market technicals;
- Primary and Secondary markets both offer attractive pricing;
- Corporate fundamentals remain strong;
- The secured, defensive nature of Senior Secured Loans offer a highly compelling risk/return profile to investors;
- The floating rate nature of Loans can also provide a hedge against interest rate sensitivity;
- Ability to exploit relative value in different geographies.
Zak Summerscale, Chief Investment Officer of European High Yield at Babson Capital, said:
“Raising over $1.2 billion in a relatively short time period from a blue-chip global investor base is testament to the strength and expertise of our Senior Secured Loan and Bond capabilities and the opportunities inherent in a ‘Global’ approach. Our Global Senior Secured Loan and Bond strategies are an important element of our wider product offering to provide investors with access to a range of strategies in the increasingly complex sub-investment grade credit markets.”
*Includes all European and US assets within segregated mandates, structured credit vehicles and open ended funds
Notes to Editors
Babson Capital (comprising Babson Capital Management LLC and Babson Capital Europe Ltd.) is a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company.
Babson Capital is a global investment management organisation that manages $149 billion of Fixed Income, Real Estate and Alternative Assets globally, offering clients access to investment opportunities across the globe and across the investment universe.
Babson Capital has built a market leading franchise across the US and European High Yield, Loan and Bond markets by consistently applying a bottom-up fundamental approach to each investment opportunity. It manages approximately $27 billion in High Yield, Senior Secured Loans and Bonds across structured vehicles, separate accounts, commingled funds and hedge funds and employs 70 investment professionals dedicated to Global High Yield with significant presence in the US and European markets. Babson Capital’s investor base includes financial institutions, pensions, foundations & endowments, insurance companies, family offices and sovereign wealth funds.
Babson Capital Global Loan Fund
The Babson Capital Global Loan Fund seeks to provide investors with income and where appropriate, capital appreciation. The Fund achieves its investment objective by investing primarily in Senior Secured Loans and, to a lesser extent, Senior Secured Bonds issued by North American and European companies. It is a Dublin-based Qualifying Investor Fund.
Babson Capital European Loan Fund
The Babson Capital European Loan Fund is an actively managed Senior Secured Loan strategy investing primarily in a diversified portfolio of Senior Secured Loans issued by European companies. It seeks to provide high income and capital appreciation with a compelling risk/return profile.
The European Loan Fund seeks to utilise the strength and expertise of Babson Capital’s European Credit team to capture value for investors in a transparent, unleveraged fund. Structured as an Irish Qualifying Investor Fund, it is available in euro, US dollar and pound sterling share classes.
Babson Capital Management LLC is a registered investment adviser with the Securities and Exchange Commission under the Investment Advisers Act 1940, as amended.
Babson Capital Europe Limited is authorized and regulated by the Financial Services Authority in the United Kingdom (Ref No. 194662) and is a Company registered in England and Wales (No. 03005774) whose registered address is 61 Aldwych, London, WC2B 4AE.
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