New fund provides an opportunity to invest alongside co-investors
Aegon Asset Management has launched Capital Call Finance Fund, an evergreen vehicle that provides access to the growing market for capital call financing.
The reserved alternative investment fund (RAIF) was registered in Luxembourg in October 2024. Aegon is targeting institutional investors in Europe and the UK. It has three initial clients but their identities are not publicly disclosed under the usual RAIF terms.
Capital call financing provides short-term credit facilities to private market fund managers to bridge capital needs before drawing down commitments from LPs.
Bas Kragten, head of fund finance and infrastructure debt, said in a statement: “Capital call facilities continue to be an important financing tool for private market funds. These credit facilities enable fund managers to bridge capital needs before calling down fund commitments from Limited Partners (LPs).
“Backed by our strong track record and first mover advantage, the launch of the Aegon Capital Call Finance Fund draws on this opportunity by offering investors access to a new asset class alongside market-leading co-investors.”
The fund offers a short-maturity loan portfolio with an investment-grade risk profile and matching liquidity options. It launches with commitments from multiple third-party investors and is the latest addition to Aegon AM’s €84 billion alternative fixed income platform.
The strategy will be managed by Aegon’s six-person fund finance investment team in Europe, supported by its global private equity, leveraged finance and research teams.
The firm has deployed more than €4 billion across 100+ fund finance transactions since 2018, with no reported credit losses or credit risk migration.
The launch follows the March approval of Aegon AM’s private credit Long-Term Asset Fund (LTAF) and underscores its ambition to grow its alternative credit capabilities.
Erik den Hertog, head of client group for continental Europe, added: “This further demonstrates our strategic priority to expand our alternative fixed income platform as we leverage our scale and long-standing expertise to create innovative solutions for our growing client base.”