European Direct Lending
A conservative strategy utilising a unique origination approach and full ESG integration. Deployed by an experienced team, its aim is to deliver robust performance through the cycle, while providing quarterly cash-income distributions.
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Key strategy features:
Conservative strategy
Seeks to invest in a
diversified portfolio
of attractive European first lien senior secured and unitranche loans.
Target return:
EURIBOR +5%
gross annualised return.
Estimated IRR of
8-9%
in current interest rate environment. IRR for illustrative purposes only, does not indicate return target.
Intensive
fundamental credit analysis, prioritising downside protection with robust loan documentation.
Please note, targets (gross of fees) and downside protection are not guaranteed.
Unique origination focused on Northern European SMEs
- Co-lending agreements with four, highly active and reputable partner banks in Northern European geographies
- Exclusive access to a high-quality pipeline of loans across European lower and midmarket businesses, complemented by independent origination through the investment teams vast network of contacts in Europe
- Partner banks are legally bound to invite Federated Hermes to lend alongside them as lender of record, on the same economic terms
Fully ESG integrated
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Three pillar approach to consideration of ESG factors & risks
Exclusion and enhanced due diligence
Awareness and analysis
Monitoring and engagement
SFDR Article 8 compliant (EU/2019/2088)
In-depth environmental, social and governance (ESG)
Analysis and reporting
Proprietary ESG rating
SDG matching
Engagement analysis
Carbon estimates for each borrower included within investor reporting
Latest insights
EUROPEAN DIRECT LENDING STRATEGY
Locating the sweet spot in Direct Lending
Connect with us to find out more:
IR team: [email protected]
Closely Connected
For enhanced outcomes
BD014597
