Demand for private credit continues to swell: Aberdeen raises €620m year to date for the fund finance strategy including €270m for fund launch
28 July 2025- New launch is a semi-liquid evergreen product structured as a Luxembourg SCSp-RAIF.
- The Fund’s two-year lock-in is designed to offer investors a greater level of flexibility relative to other private credit strategies, which typically have a longer tenor.
Aberdeen, the specialist asset manager, today announces that it has to date raised €270m for its abrdn Private Credit SCSp RAIF- Global Fund Finance Fund (the Fund) launch, in its first tranche of fundraising which has been seeded by a number of European and UK pension funds and family offices.
It brings the total raised for this strategy over the year to date to €620m, with Aberdeen running the same strategy for institutional clients on a discretionary basis.
It is the latest fund finance offering from Aberdeen’s twenty strong team of private credit investors, with an average nineteen years’ experience investing through the credit cycle.
Aberdeen has been active in this burgeoning space since 2018, through its award-winning fund finance strategy (Insurance Asset Management Award, 2023).
The launch comes as demand for specialist private credit continues to swell, having become a key tool to unlock global growth, as institutions increasingly seek access to credit.
The Fund will invest in a diverse range of investment grade (or equivalent) subscription line facilities. These are loans made to private markets funds including private equity, private credit, secondaries and infrastructure funds. They are commonly used to bridge the investment activity of a fund, providing certainty of funding and short notice access to liquidity.
The Fund will spread credit risk across the uncalled commitments of a large pool of high-quality, institutional investors, diversified by geography and investor type.
Aberdeen focuses on lending to mid-market funds managed by best-in-class sponsors/General Partners where it believes returns are more attractive than in the larger end of the market.
The investment team is supported by our in-house structuring team, ensuring in-depth due diligence and robust security packages in our legal documentation. Additionally, our strong private credit operations platform enables us to achieve a complexity premium in our transactions: we can invest in Revolving Credit Facility (RCF) formats as well as Term Loans, we extend multi-currency facilities, and we can offer same-day USD funding. These are all differentiating factors that enable us to achieve attractive complexity premia for our clients.
Shelley Morrison, Head of Fund Finance at Aberdeen, said: “Fund finance has grown not just in volume but also in its ability to provide increasingly sophisticated solutions, offering General Partners a series of financing options. It has become a standard part of the toolkit, and as part of the evolution, we are pleased to offer a greater level of flexibility and liquidity relative to other private credit strategies.
Investors have been keen to access the market because of the potential for attractive risk-adjusted returns with historically low volatility. Fund finance also offers valuable diversification thanks to its low correlation with other asset classes. Of course, no loan is without risk. At Aberdeen, we aim to manage that risk via our highly selective approach and disciplined focus on quality - only supporting general partners and sponsors with strong track records.”
Marianne Zangerl, Deputy Global Head of Fixed Income, Aberdeen, adds: “Momentum continues to build in private credit, as we see asset allocation shifts in favour of specialist private credit strategies. We are focused on areas where we can add significant value for our clients through the generation of an attractive illiquidity premium (the delta between credit spreads in public vs. private markets). This premium is still achievable in less well banked/funded areas of the market, and, this is a sweet spot for us.”
Fund objective:
- Deliver attractive risk-adjusted returns, enhanced credit risk diversification and defensive cashflows.
- The Fund will hold a diversified portfolio of Capital Call Facilities / Subscription line loans
Fund specific Risks
An investment in the Fund may involve risk. It is only suitable for investors who can bear the economic risk, understand the degree of risk involved, believe the investment aligns with their objectives and financial needs, and do not need liquidity. There is no assurance that the Fund’s objectives will be achieved or that there will be any return of capital.
Investing in this Fund is only suitable for those who can evaluate the merits and risks of the investment and have sufficient resources to bear any losses, including the loss of the entire investment. The value of the Fund’s investments can fluctuate and is not guaranteed. Investors may not receive the amount they originally invested.
Key facts
- Aberdeen has invested over €4bn into subscription lines since its pioneering entry into fund finance in 2018.
- The Fund will be managed by Aberdeen’s dedicated and specialist fund finance investment professionals, supported by in- house private credit operational and legal teams.
- The Fund will spread credit risk across the uncalled commitments of a large pool of high-quality, institutional investors, diversified by geography and investor type.
- Aberdeen is one of the few asset managers with the ability to extend loans as Revolving Credit Facilities (RCFs). This is a more flexible type of subscription line which therefore attracts a pricing premium.
- The Fund also has a shorter lock-in period of two years relative to other private credit funds and has reinvestment options that give investors a greater level of flexibility. It will only invest in high quality, investment grade assets.
- The Fund will initially be available to institutional investors in the following countries: United Kingdom, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, Switzerland.
- Opportunities for clients in Asia and the US, as well as a wealth-friendly solution will follow.
- Fund sleeves will be available in EUR, GBP and USD.
- All investments are rated using Aberdeen's internal credit rating using a proprietary ratings methodology which leverages DBRS & Moody’s/S&P/Fitch approaches and internal knowledge. The process is consistent, repeatable and transparent and investments are reassessed annually.
The team
Aberdeen's Fund Finance team has invested more than €4bn into 60+ subscription lines and hybrid transactions since 2018 with zero loan losses, no defaults and no assets placed on credit watchlists.
It is part of Aberdeen's wider Private Credit team which already manages c. €12bn of AUM as at 31 December 2024.
Ends
Notes to editors
About Aberdeen Investments
Aberdeen Investments is a specialist asset manager that focuses on areas where we have both strength and scale to capitalise on the key themes shaping the market, through either public markets or alternative asset classes.
Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
As at 31 December 2024, Aberdeen Investments manages £369.7bn on behalf of clients, including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.
About the Aberdeen Group
At Aberdeen, we are focused on growing our direct and advised wealth platforms and repositioning our specialist asset management business to meet client demand. We are committed to providing excellent client service, supported by leading technology and talent.
As at 31 December 2024, £511bn of clients’ assets are managed and administered across the Aberdeen Group.
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Issued by abrdn Investment Management Limited, registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL and authorised and regulated by the Financial Conduct Authority in the UK.