Morgan Stanley Investment Management (MSIM) has launched the Morgan Stanley European Private Income Fund (EPIF), a Part II SICAV that offers income-focused investors the opportunity to gain exposure to the European direct lending market in a semi-liquid structure.
Mark Jochims, head of European Private Credit for MSIM: “We’re pleased to offer our clients access to income opportunities within the European direct lending market, which we believe offers the prospect of attractive risk-adjusted returns.
“EPIF’s highly selective investment philosophy provides investors exposure to a growing asset class, whilst leveraging the deep operational expertise provided by our wider Morgan Stanley Private Credit platform.”
EPIF seeks to originate and underwrite a diverse portfolio of privately negotiated, senior secured term loans to European middle market companies with leading market positions, high barriers to entry and proven management teams, which position them to generate strong and stable free cash flows.
To provide enhanced liquidity for investors, EPIF is expected to invest approximately 10% of its capital in broadly syndicated loans and bonds. Furthermore, the fund will promote certain environmental and/or social characteristics within the meaning of Article 8 of the EU SFDR framework.
The fund will seek to take advantage of the strength and depth of the Morgan Stanley Private Credit platform and harness the power of Morgan Stanley’s integrated firm.
With the Part II SICAV structure, investors can invest via monthly subscriptions and benefit from both expected monthly income distributions and expected quarterly liquidity after a one-year lock-up period, subject to a quarterly 5% fund-level redemption gate and certain other restrictions.
“We’re delighted our fund can provide private wealth banks and managers with access to private credit,” said Federico Vettore, head of European Private Markets for Wealth at MSIM. “MSIM is focused on bringing private markets solutions to eligible European clients across the region, leveraging our deep and extensive private markets and US Wealth sector experience.”
