The UK’s Financial Conduct Authority has granted approval for the launch of the CG Aegon AM Private Credit LTAF- Aegon Asset Management’s first Long Term Asset Fund (LTAF). Carne Group, Europe’s largest independent third-party management company, will be acting as the Authorised Corporate Director (ACD) of the fund.

Aimed at the UK institutional and wealth markets, this is the first Aegon AM fund approved within the CG Aegon AM LTAF umbrella structure. The LTAF supports Aegon AM’s long-term commitment to offering clients market-leading private credit strategies across a broad range of high-quality asset classes.

Drawing on the extensive experience of Aegon AM’s 60-strong alternative fixed income team, the Fund provides diversified exposure to a range of AAM’s leading private credit strategies, including Corporate Lending, Fund Financing, Insured Credit, Renewables and Asset Backed Finance. These unique assets have the potential to generate higher returns compared to public markets, increase diversification, and contribute to financing companies and projects in various high-quality jurisdictions including the United Kingdom.

Jill Johnston, Head of Institutional Business at Aegon Asset Management said: “Private markets have received a great deal of attention over recent years with a particular focus on new groups of investors, such as defined contribution pension funds and the wealth management market, who have previously not necessarily had any significant exposure to this type of asset class. The LTAF offers investors access to illiquid assets in a regulated structure which might not have been possible in the past. The valuation, subscription and redemption processes provide additional protection for investors but also encourage long-term investment where daily liquidity is not necessary, such as for long-term pension savings.

“Private markets offer exposure to a wider and more diversified pool of return drivers than is possible with liquid asset classes alone. This includes smaller and private businesses, privately financed infrastructure projects, and private loans to emerging economies. Our focus on the higher quality, lower risk segments of the market means investors have the potential to earn an ongoing illiquidity premium during the growth, de-risking and decumulation phases of their pension life cycle.

“We are seeing increasing demand from a broad church of investors and with Government and Regulatory encouragement across the insurance, pension and local government markets we expect this to continue.”

Rich Willoughby, Product Lead at Carne Group, commented: “As demand for private markets continues to intensify across both institutional and retail wealth audiences, the launch of Aegon AM’s LTAF represents an important milestone in the opening up of private credit opportunities to a broader investor base, including UK pension savers. We’re delighted that Carne continues to be the partner of choice for bringing innovative LTAF products to market. Carne’s relationship with Aegon exemplifies the benefits of industry collaboration in providing best-in-class fund management processes.”