Endowus has partnered with CVC to launch a standalone European private credit strategy for accredited and professional investors in Singapore and Hong Kong, expanding access to direct lending beyond the US-focused strategies that dominate the wealth market, according to a report by Fund Selector Asia.
The strategy marks the Asian wealth management platform’s first standalone private credit offering focused specifically on European direct lending. It had previously been available to Endowus clients only as part of a broader portfolio.
The structure is designed to provide greater accessibility than a traditional closed-end private credit fund while retaining the illiquid characteristics associated with the asset class, according to Endowus.
The partnership gives investors exposure to European borrowers, currencies and economic cycles that differ from those underpinning much of the private credit exposure available to Asian investors.
CVC, one of Europe’s largest alternative asset managers and collateralised loan obligation managers, has more than two decades of experience investing in European direct lending. Its credit platform manages €52bn ($58.3bn) of assets, according to Endowus.
The firm’s network of local offices and relationships with private equity sponsors and banks is expected to provide access to a broad pool of European lending opportunities.
Endowus chief investment officer Hugh Chung said the European direct lending market had generated significant opportunities, but private wealth strategies had historically been concentrated on the US.
Samuel Rhee, chairman and group chief investment officer at Endowus, said the partnership would give the platform’s high-net-worth clients access to a differentiated source of risk-adjusted returns while allowing portfolios to benefit from Europe’s diverse markets and local dynamics.
