Channel Capital launches European Private Credit Fund

Australian feeder fund accesses Goldman Sachs Asset Management’s European Private Credit strategy

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At a glance:
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• Channel Capital has launched the West Street European Private Credit Fund (AUD) for Australian wholesale investors.
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• The fund accesses Goldman Sachs Asset Management's European Private Credit strategy, focusing on senior secured debt for mid-to-large European companies in recession-resilient, non-cyclical industries.
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• Goldman Sachs Asset Management’s private credit business is one of the world’s largest platforms globally.
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• The fund offers exposure to European and non-US OECD markets, and aims to generate income based on a buy-and-hold strategy.
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Channel Capital, a leading Australian multi-partner asset management firm, has launched a European private credit fund for Australian wholesale investors. The West Street European Private Credit Fund (AUD) is an open-end Australian unit trust that accesses Goldman Sachs Asset Management’s European Private Credit strategy, which was introduced in offshore wealth markets in late 2023.

The fund aims to deliver risk-adjusted returns through exposure to directly originated senior secured debt with borrowers. The focus is on high-quality, mid-to large cap companies with stable cash flows and leading market positions in recession-resilient industries such as healthcare and software.

Goldman Sachs Asset Management’s private credit business is one of the world’s largest private credit platforms with over US$110 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies.  

James Reynolds, Global Head of Direct Lending at Goldman Sachs Asset Management, said: “We have been an active investor in European private credit since 1996 and continue to see the market as a source of returns for investors. Australian investors are increasingly interested in private credit opportunities internationally and through this fund from Channel Capital, they will be able to access the direct lending markets in Europe for diversification.”

Channel Capital offers the fund and will provide all non-investment services, including responsible entity services, operations, client services, and distribution and marketing.

Luke Mandekic, Co-Head of Distribution at Channel Capital, added: “Far from being a niche asset class, European private credit offers exposure to a deep pool of leading global businesses. Many large European companies within the portfolio generate a significant portion of their revenues from outside Europe, adding to portfolio diversification. The European private credit market is rapidly growing, driven by the demand for alternative financing sources, creating a dynamic environment for investors.

“The West Street European Private Credit Fund (AUD) provides an attractive opportunity for Australian investors to access a diversified portfolio backed by Goldman Sachs Asset Management’s cycle-tested private credit platform, which leverages the extensive network and sourcing capabilities of Goldman Sachs.”

The fund aims to generate income through exposure to a portfolio of high-quality assets. It offers monthly applications and redemptions, and is expected to receive research ratings and broad platform access shortly.

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Channel Investment Management Limited ACN 163 234 240 AFSL 439007 (‘CIML’ or ‘Responsible Entity’) is the responsible entity and manager of the Fund.