Aberdeen Secures £233 Million for Launch of New Subsidiary Investment Fund
Aberdeen, a leading asset management firm, has announced the launch of its new subscription line finance fund, the **abrdn Private Credit SCSp RAIF – Global Fund Finance Fund**. The fund has successfully raised £233 million in its first fundraising tranche, contributing to a total of £527 million raised for this strategy year-to-date.
This innovative fund offers diversified investment opportunities in private markets by investing in a broad range of investment-grade subscription line facilities. These short-term loans are made to private markets funds, encompassing private equity, private credit, secondaries, and infrastructure funds.
The fund's design provides certainty of funding and access to liquidity at short notice, offering flexibility and risk mitigation. Key features enabling diversified investment opportunities include risk diversification, investment in high-quality assets, a flexible fund structure, experienced management, and diversification across private market segments.
Risk diversification is achieved by spreading credit risk across the “uncalled commitments” of a large pool of high-quality institutional investors, diversified by geography (UK, Europe, with potential for Asia and US) and investor type. The fund invests only in high-grade, investment-grade assets subject to Aberdeen’s proprietary internal credit rating system.
The fund offers a relatively short two-year lock-in period, reinvestment options, and the ability to extend loans as Revolving Credit Facilities (RCFs), a more flexible product with a pricing premium. Aberdeen's dedicated team of over 20 private credit investors, with nearly two decades of average experience, manages the fund. Since 2018, they have invested more than £3.8 billion into subscription lines with zero loan losses or defaults.
The fund is designed as a semi-liquid, evergreen structure, offering ongoing investment and redemption opportunities with some liquidity, increasing investor flexibility. Marianne Zangerl, deputy global head of fixed income at Aberdeen, stated that they are focused on areas where they can add significant value for clients through the generation of an attractive illiquidity premium.
The fundraising for the abrdn Private Credit SCSp RAIF - Global Fund Finance Fund was seeded by several European and UK pension funds and family offices. These investments are made via Aberdeen's private credit operations platform. Shelley Morrison, head of fund finance at Aberdeen, stated that investors have been keen to access the market because of the potential for attractive risk-adjusted returns with historically low volatility.
The new fund will invest in a diverse range of investment-grade, or equivalent, subscription line facilities. This premium is still achievable in less well-banked/funded areas of the market, and this is a sweet spot for Aberdeen, according to Zangerl. Fund finance offers valuable diversification thanks to its low correlation with other asset classes.
This latest offering from Aberdeen's private credit team, which manages approximately £10 billion of assets under management, is set to provide a unique and attractive investment opportunity for those seeking exposure to the private markets.
- The abrdn Private Credit SCSp RAIF – Global Fund Finance Fund, launched by Aberdeen, invests in a diverse range of investment-grade subscription line facilities, offering diversified investment opportunities in private markets by providing short-term loans to private equity, private credit, secondaries, and infrastructure funds.
- Key features of the fund include risk diversification, investment in high-quality assets, a flexible fund structure, experienced management, and diversification across private market segments, with a relatively short two-year lock-in period, reinvestment options, and the ability to extend loans as Revolving Credit Facilities (RCFs).
