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Private debt

The SP EuroCréances Private Debt fund range targets professional investors wishing to invest in senior grade credit risk to diversify their asset allocation and limit exposure to market volatility. With an average maturity of about six years, these are closed-end funds that invest primarily in French and European small- and medium-sized enterprises (SMEs).

Schelcher Prince Gestion has specialist expertise in private debt and has developed:

  • a range of SP EuroCréances funds aimed at financing the real economy and small- and medium-sized enterprises
  • proactive identification of candidate companies within the SME ecosystem
  • the ability to implement Senior Debt interest-only financing solutions that can adapt to each company’s objectives and particularities 
  • an investment process that integrates ESG criteria and has a 5-year track record
  • coherent and consistent credit risk analysis
  • a team of eight committed and experienced industry professionals

 

Our approach : Expected Loss

With this range of funds, Schelcher Prince Gestion is primarily seeking to provide investors with regular long-term yield in exchange for moderate exposure to credit risk.

The expected loss method of measuring credit risk is a key element in the team’s investment approach. Schelcher Prince Gestion was the first French asset manager to apply the expected loss model, which originated from EU banking regulations on asset management.

Using this model, the investment committee can take a systematic approach to measuring the return on risk associated with each potential investment and make coherent, finely tuned decisions.

OUR TEAM

A team of eight highly experienced professionals manages the investment process from start to end: sourcing, analysis, structuring, legal framework, closing and borrower monitoring. The only aspect undertaken by a third party is ESG, which we outsource to EthiFinance, a recognised expert in SMEs and unlisted companies.

Monitoring our target investment universe involves building and maintaining close ties with the SME ecosystem. This is exactly what our team does so well. 

Each member adds value to the team via their individual experience. Their collective expertise includes structured finance in commercial banking, private equity, structured credit in investment banking, loan officer responsibilities and banking portfolio monitoring.

These diverse backgrounds afford us a multichannel approach to sourcing while enabling us to critically assess all aspects of potential investments and implement effective borrower monitoring. The team can also produce bespoke reports that meet each investor’s requirements.

With three funds under management, one of which is currently raising capital, and two mandates including a public mandate for the French Pensions Reserve Fund, total assets under management in 2018 exceeded €1 billion. With over 100 small- and medium-sized enterprises having secured finance in the last five years, Schelcher Prince Gestion has demonstrated its expertise in this asset class. The 2014 and 2016 editions of SP EuroCréances have delivered stable yields of 4–4.5% (net of fees).

By offering interest-only financing, SP EuroCréances funds finance the real economy, providing companies and their governance teams with in addition to traditional bank products. Interest-only solutions provide a long-term funding resource and enable companies to allocate a greater percentage of their operational cash flows to business development.

 

Main Features of SP EuroCréances 2016 :

Caractéristiques Univers d'investissement EN

Central to our investment approach is the expected loss model, which we use to assess credit risk.

 

Expected Loss Appproach 

 

Process d'investissement EN


 

This asset class demands in-depth expertise to analyse, structure and implement tailored solutions, along with a sound investment process in which long-term clients can trust. Above all, it responds to the needs of the real economy, financing local companies and regional projects.

Isabelle Bourrier
Head of private debt