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Lloyd’s expands investment opportunities through US Direct Lending Fund

15 Dec 2023

Lloyd’s, the world’s leading marketplace for insurance and reinsurance, today announces a new US Direct Lending Fund on the Lloyd’s Investment Platform*.

The new fund offers efficient access to US middle market direct lending opportunities through a tailored fund structure that caters to the specific investment needs of the Lloyd’s market. The direct lending fund solution represents a unique credit opportunity in the largest and most established US private debt market.

The US Direct Lending Fund is the second private asset product on the Lloyd’s Investment Platform, following the launch of the Lloyd’s Private Impact Fund in April this year.

Canopius, a well-established insurer in the Lloyd’s insurance market, is the cornerstone investor for the launch of the new fund alongside the Lloyd’s Central Fund.

Following a full screening of US direct lenders and an extensive due diligence and approval process, Schroders Capital on behalf of the Lloyds Investment Platform has selected Maranon Capital L.P. (‘Maranon’) to manage this fund strategy.

“Through the new fund on our Investment Platform, we are providing the Lloyd’s market with seamless access to the US mid-market lending space. With the expertise of our partners at Schroders and Maranon, we are confident that this latest initiative will provide another significant investment opportunity for the Lloyd’s market."
Eleanor Bucks, Chief Investment Officer at Lloyd’s
“The launch of this new fund represents a valuable expansion of investment opportunities for our capital deployed in the Lloyd's market. Access to tailored investment solutions such as the U.S. Direct Lending fund is an attractive development at Lloyds, and we are pleased to support this.”
Gareth Russell, Group Chief Investment Officer at Canopius
“Maranon is honoured to have been selected as the manager for the Lloyd’s US Direct Lending Fund. We are looking forward to bringing our 16 years of experience investing in over 400 US middle market direct lending transactions to the Fund.”
Ian Larkin, Founding Partner and Chief Executive Officer, Maranon

Notes to Editors

*The Lloyd’s Investment Platform offers market participants broader access to investment opportunities and operational efficiencies through investing collectively.

  • The Lloyd’s market is supported by £100bn of globally-invested assets.
  • The fund will be available to all investors who are part of the Lloyd’s market.
  • The fund seeks to achieve attractive risk-adjusted returns on a diverse portfolio of directly originated senior-secured, first lien loans to primarily sponsor-backed mid-market companies in North America typically ranging from $5-50m EBITDA.

Key features

  • Target return of 3-month SOFR +5-6.5% gross over the medium to long-term
  • Provides efficient access to attractive risk-adjusted returns with floating-rate income 
  • Customised, FAL-approved fund designed specifically for the needs of Lloyd’s investors 
  • Quarterly liquidity offered in an open-ended fund structure 
  • Experienced, specialist manager selected by Schroders Capital’s investment manager selection team 
  • Minimum investment size $5m
  • Schroders Capital are the distributor for the fund.

There is no guarantee the fund will achieve any investment objective or guideline over this market cycle or any other time period. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

About Maranon

Maranon is an SEC-registered institutional alternative investment management firm focused solely on private credit investment strategies for US middle market companies, providing a robust track record through multiple economic cycles dating back to 2007.

About Canopius

Canopius is a global specialty (re)insurer with underwriting operations in Australia, Bermuda, Singapore, the UK and US. It underwrites through Lloyd’s Syndicate 4444 (managed by Canopius Managing Agents Limited), a US surplus lines insurer, Canopius US Insurance, Inc and Canopius Reinsurance Ltd, a Bermuda based Class 4 Reinsurer.   

www.canopius.com LinkedIn

Enquiries to

pressoffice@lloyds.com

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