European credit specialist AlbaCore Capital Group has launched a new Senior Direct Lending Strategy with $1.8 billion in expected investable capital, backed by anchor commitments from the Abu Dhabi Investment Authority (ADIA) and Mitsubishi UFJ Trust and Banking Corporation.
The strategy will focus on financing senior private loans to upper-mid and large-cap European companies. AlbaCore said it will use its experience in European corporate credit and a bottom-up fundamental analysis approach to build a diversified lending portfolio emphasizing downside protection and risk-adjusted returns.
“Securing commitments from ADIA and the Trust Bank for the first vintage of our Senior Direct Lending Strategy is a testament to the opportunity in the market and AlbaCore’s position within it,” said David Allen, managing partner and chief investment officer at AlbaCore.
The move reflects growing demand for private credit solutions across Europe, with institutional investors looking to increase exposure to direct lending strategies.
“This anchor commitment presented the opportunity to grow our existing relationship with AlbaCore,” said Hamad Shahwan AlDhaheri, executive director of the Private Equities Department at ADIA. “The strategy is well placed to address the significant and growing demand from European corporates for private credit.”
Takafumi Ihara, chief executive of the Asset Management & Investor Services Business Unit at the Trust Bank, said the investment supports the firm’s efforts to expand its global private asset capabilities.
AlbaCore, founded in 2016 and part of First Sentier Investors Group, manages $9 billion in assets across private capital, dislocated credit, CLOs and structured products.