History and Purpose
Schroders Capital Semi-Liquid European Loans offers institutional access to a diversified portfolio of senior secured European loans, structured through a semi-liquid SICAV format. The fund aims to provide capital growth and income over a 5–7-year horizon by investing in sub-investment-grade corporate debt, primarily through senior secured loans. It targets professional and sophisticated investors seeking enhanced yield opportunities through exposure to private credit markets.
Structure & Liquidity
The fund is domiciled in Luxembourg and managed by Schroder Investment Management (Europe) S.A. It accepts daily subscriptions and redemptions with a 28-day notice period, capped at 10% of NAV per dealing day. It is classified as semi-liquid and designed for investors who understand and are comfortable with longer investment horizons and potential illiquidity.
Key details:
- Fund Size (as of 30 June 2024): €126.2 million
- Minimum Investment: Not specified in public documents; for professional investors only
- Management Fee (Ongoing Charges Estimate): 0.24%
- Performance Fee: None
- Share Class ISIN: LU2631246696 (Class I EUR-Dis)
- Dealing Frequency: Daily (with 28-day notice)
Strategy:
Focuses on senior secured loans to European companies, with up to:
- 20% allocated to North American borrowers
- 20% in senior secured bonds
- 15% in second lien, subordinated loans, or other debt instruments
Equity investments and derivatives may also be used for risk management or tactical exposure. Currency risk is hedged to EUR.
Sustainability is considered using Schroders’ proprietary ESG assessment system, only including investments that meet minimum ESG thresholds.
Performance expectations (as per PRIIP KID):
- Moderate Scenario (5-year annualized return): 3.4%
- Favourable Scenario (5-year annualized return): 5.0%
- Stress Scenario (5-year annualized loss): -9.1%
- KID Risk Indicator: 2 out of 7 (Low Risk)
- Total Costs (5 years): €282 on a €10,000 investment
- Annual Cost Impact: 0.5%
Management and Oversight
The fund is overseen by Schroders Capital, with the investment team based in London. The depositary is Brown Brothers Harriman (Luxembourg) S.C.A., and Ernst & Young serves as the auditor. The fund is part of the broader Schroders Capital Semi-Liquid umbrella, which includes strategies across private equity, real estate, and infrastructure.
Schroders Capital Semi-Liquid European Loans offers a compelling, lower-risk entry point into private credit, with strong diversification and stable yield potential, well-suited for professional investors seeking semi-liquid exposure to European leveraged loans. Please read our Deepdive to deepen your understanding.
