The Financial Conduct Authority (FCA) has granted approval for Aegon Asset Management to launch the Carne Group Aegon Asset Management private credit Long-Term Asset Fund (LTAF), with Carne Group acting as the authorised corporate director of the fund.

This is Aegon Asset Management’s first LTAF and the first Aegon Asset Management fund approved within the Carne Group Aegon Asset Management LTAF umbrella structure.

The LTAF is aimed at the UK institutional and wealth markets and will support Aegon Asset Management’s long-term commitment to offering clients private credit strategies across various asset classes. 

The fund will provide diversified exposure to a range of Aegon Asset Management's private credit strategies, including corporate lending, fund financing, insured credit, renewables, and asset-backed finance.

Aegon Asset Management said these assets have the potential to generate higher returns compared to public markets, increase diversification, and contribute to financing companies and projects in various jurisdictions including the UK.

“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 (DC) pension funds and the wealth management market, who have previously not necessarily had any significant exposure to this type of asset class,” stated Aegon Asset Management head of institutional business, Jill Johnston.

“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.”

Johnston said private markets offer exposure to a wider and more diversified pool of return drivers than is possible with liquid asset classes alone, including smaller and private businesses, privately financed infrastructure projects, and private loans to emerging economies.

She noted that Aegon Asset Management’s focus on higher quality, lower risk segments of the market gives investors the potential to earn an ongoing illiquidity premium during the growth, de-risking, and decumulation phases of their pension life cycle.

Additionally, she emphasised that Aegon Asset Management has seen an “increasing” demand from a broad church of investors and expects this to continue given the government and regulatory encouragement across the insurance, pension, and local government markets.

Carne Group product lead, Rich Willoughby, added: “As demand for private markets continues to intensify across both institutional and retail wealth audiences, the launch of Aegon Asset Management’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 Group continues to be the partner of choice for bringing innovative LTAF products to market.

“Carne Group’s relationship with Aegon exemplifies the benefits of industry collaboration in providing best-in-class fund management processes.”

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