Russell Investments has launched its new evergreen, multi-manager Global Private Credit Fund, which is designed to provide diversified exposure across North American and European private credit markets, according to a report by CityWire.
The fund has already made investments in seven specialised portfolios and aims to further expand its holdings in various strategies across the two regions. It targets an annualised net return of 8% over a market cycle and will be available to professional investors in countries such as the UK, France, Luxembourg, Belgium, Netherlands, Italy, Germany, and Austria.
The fund will include investments in evergreen strategies that offer periodic liquidity opportunities. Additionally, it will maintain a credit line to manage cash flows efficiently. According to Keith Brakebill, Senior Portfolio Manager for Private Credit at Russell Investments, the fund is structured to withstand potential redemption pressures without resorting to gating or suspending the net asset value (NAV).
“We feel confident in our ability to manage multiple quarters of potential redemptions before having to consider more drastic measures like suspending the NAV,” Brakebill said in an interview with Citywire.
The fund primarily focuses on evergreen structures but allows for limited investments in closed-ended funds, particularly for strategies that are better suited to a closed-end structure due to liquidity considerations. No single closed-ended fund will account for more than 15% of the total fund allocation.