Cordiant hits $350 million at final close of latest emerging market loan fund
Cordiant, a leading emerging market private debt fund manager, has raised US $350 million at the final close of its latest debt fund, the Cordiant Emerging Loan Fund IV (CELF IV).
The fund’s primary focus will be on senior, secured loans issued to emerging market private sector borrowers, with an emphasis on diversification across countries and sectors.
Investors in the fund include insurance companies, pension funds and other provident funds.
CELF IV will allow institutional investors to take advantage of the growing imbalance in the emerging markets between the escalating demand for bank style funding and the shrinking balance sheets of Western banks that used to supply much of this lending.
Explains Bertrand Millot, President and CEO of Cordiant: “As banks in developed economies have become more insular in retreating to their home markets, private debt financing has stepped out of its niche role. It has established itself as a viable alternative to traditional bank financing. The demand for stable financing in developing markets continues to expand as these countries seek to grow and modernize, resulting in attractive opportunities for those with a long-term horizon. ”
Cordiant has developed an extensive pipeline of investments across a broad range of sectors, including infrastructure, manufacturing and financial services. Millot adds: “Our focus is on loans that are backed by high levels of collateral and strong covenants, and benefit from measures that mitigate political risk. In our opinion, the investment opportunities that we are seeing are of the highest quality.”
Cordiant says that investors are seeing private debt as an increasingly mainstream asset helping investors to diversify returns away from bonds and equities.
Says Millot: “The wide range of borrowers who raise money through the private loan market also allows investors to look beyond sectors like oil & gas that tend to dominate the emerging market bond market.”
Loans within the private debt market are typically floating rate (linked to an interest rate index) and, therefore, providing a hedge against interest rate rises.
Founded in 1999 and based in Montreal, Canada, Cordiant pioneered the creation of emerging market corporate loan funds that invest in partnership with International Financial Institutions.
Cordiant’s clients include some of the world’s largest institutional investors. With US $2.4 billion in total subscriptions, the firm manages four emerging market loan funds; the ICF Debt Pool; and one private equity fund, the Canada Investment Fund for Africa.
The firm has made investments in approximately 200 companies in more than 50 emerging countries. It has exposure to all major sectors, including a large number of infrastructure investments. Cordiant is a signatory to the UN Principles for Responsible Investment. Cordiant is a regulated entity within Canada, the United States and Luxembourg. Further information about Cordiant is available at intranet.cordiantcap.com.
CELF IV cannot be marketed or sold in the US.
Managing Director, Investor Relations
Cordiant Capital Inc
Tel: +1 514 286 0171
Nick Mattison or Richard Crossan
Mattison Public Relations
Tel: +44 (0) 20 7645 3636