Principal Asset Management has launched a perpetually offered interval fund, Principal Private Credit Fund I, targeting over 90% exposure to private credit loans.
The fund will be offered to retail and institutional investors, and will focus on the lower middle market, which it defines as borrowers with $5-15 million in EBITDA, the firm said in an interview. Principal also intends to opportunistically target the core middle market, including borrowers with $15-50 million in EBITDA.
Target industries include commercial and professional services, technology, software, healthcare, and food and beverage.
Principal seeded the fund with around $40 million in lower and core middle market loans, across 37 borrowers.
Principal Private Credit Fund I is managed by Principal Asset Management’s direct lending team, Principal Alternative Credit, according to a June 4 company statement.
“With this offering, we have taken the proven approach of the Principal Alternative Credit team and offered it as an Interval Fund to meet the needs of our clients in the US Wealth Markets,” said Principal executive managing director Barbara Wenig.
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