Coller Capital, a UK-based specialist in private credit secondaries, has introduced an open-ended fund targeting individual investors. The move is part of a broader trend of private asset firms diversifying their investor base beyond large institutions.
The fund, known as CollerCredit, will offer private credit secondary investments to qualified high-net-worth investors outside the US. It is structured as a Luxembourg-domiciled SICAV, equivalent to an open-ended investment fund in the US.
The vehicle offers a monthly subscription for access to private credit secondaries with quarterly redemptions capped at 5% of the fund’s assets, according to a person familiar with the strategy.
CollerCredit is launching with $250 million of seeded capital from global investors.
The fund marks the latest in a string of efforts by the secondaries specialist to make its offerings accessible to individual investors. In June, the 34-year-old firm launched its first Luxembourg SICAV fund, dubbed Coller Equity—a perpetual private equity fund aimed at private wealth investors. That fund was seeded with over $470 million.
The attempts to reach individual investors come amid a growing tendency among private asset managers to pursue new sources of capital as institutional investors tighten their purse strings.
PitchBook analysts estimate private credit strategies are poised to raise over $63 billion from perpetual vehicles designed to target private wealth investors in 2024, marking a staggering 40% rise from the previous year.
Several private credit firms recently stepped up their efforts to bring private markets to individuals.
In a recent example, Golub Capital formed a strategic partnership with Japan’s Mizuho Financial Group on Monday, granting the Japanese bank exclusive rights to distribute Golub’s investment products to Japanese retail and high-net-worth investors. Mizuho acquired a less than 5% stake in Golub as part of the partnership.
Another noteworthy case comes from Apollo, which is seeking approval for an actively managed exchange-traded fund that would hold a mix of public and private credit investments in its portfolio.
If approved, the product would be the first ETF to directly hold private credit, ushering in a new era that opens up retail money to illiquid private credit investments, according to Morningstar analysts. However, the initiative still faces some hurdles. A key challenge lies in how it could effectively match a pool of illiquid investments with a liquid vehicle that trades throughout the day.
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