Banca March expands its European co-investment range with a subordinated corporate debt fund in partnership with MV Credit (Natixis Investment Managers)
06 September 2022 Category: Banca March
Banca March has expanded its co-investment range, launching MV Subordinated-Natixis ELTIF, an exclusive Banca March vehicle investing in pan-European subordinated corporate debt.
- Banca March developed the subordinated corporate debt investment vehicle MV Subordinated-Natixis ELTIF in partnership with MV Credit, a leading pan-European alternative financing specialist affiliated with Natixis Investment Managers, one of Europe's leading asset managers.
- This new co-investment product, designed exclusively for Banca March customers, offers a compelling risk-performance profile with stable returns and limited exposure to the cycle. The product offers a net annual target return is 8%-10%.
- Through MV Subordinated-Natixis ELTIF, Banca March customers can secure exposure to the strategy of MV Credit's fifth pan-European subordinated corporate debt fund, which seeks to finance the growth of non-listed companies in the main western European economies through debt instruments, alongside top-level private equity players.
- In line with its unwavering philosophy of Shared Growth for customers, shareholders, employees and society as a whole, Banca March has distributed more than €70 million across over 200 customers, half of whom had invested in a co-investment strategy for the first time ever.
Banca March has expanded its co-investment range, launching MV Subordinated-Natixis ELTIF, an exclusive Banca March vehicle investing in pan-European subordinated corporate debt. The new solution affords access to the fifth pan-European subordinated corporate debt fund by MV Credit, a leading pan-European alternative financing specialist affiliated with Natixis Investment Managers, one of Europe's leading asset managers.
The ELTIF, developed exclusively for Banca March customers to afford access for a broad range of savers and investors to MV Credit's investment strategy, has attracted inflows of €70 million. In keeping with its philosophy of Shared Growth with customers, employees, shareholders and society as a whole, Banca March invests in the strategy alongside its customers.
Co-investment with low exposure to the cycle
This new Banca March co-investment product is designed to offer a compelling risk-performance profile with stable returns and low exposure to the cycle. The fund has a net annualised target return of between 8% and 10%, including regular income payments with an annual target return of between 4% and 6%. Like all illiquid investment products, it is a medium to long-term investment strategy; in this case, the average financing horizon is 3 to 4 years and the maximum investment period for the fund is ten years.
This fifth fund by MV Credit invests in companies in the main western European economies through debt instruments, alongside top-level private equity names such as EQT, Nordic Capital, PAI Partners and Cinven. These investments are channelled primarily into defensive sector leaders with a global footprint, EBITDA of over €30 million, a resilient business model and recurring cash flows, with a particular preference for B2B businesses in the Health and IT sectors. Particular emphasis is also placed on ESG factors, as MV Credit observes the main international recommendations in relation to responsible and sustainable investing (PRI, TCFD), both in the investment process itself and in preparing post-investment improvement plans.
The Banca March Product Area said: In line with Banca March's innovative initiatives in alternative and illiquid assets, this co-investment solution affords access for the bank's customers to a pan-European investment opportunity with sources of returns which are protected from market fluctuations, forging long-term links between savers and investors and the bank itself. Once again, our customers have demonstrated their confidence in this type of product, which are one of the defining hallmarks of Banca March, the only Spanish bank that offers its customers the opportunity to invest in the same products as the bank's shareholders, Spain's most solvent bank and among the most solvent in Europe”.