#DEAL #ELTIF #INVESTMENTMANAGEMENT #FUND #FUNDMANAGEMENT #LIFEINSURANCE #PRIVATEDEBT

Arendt assisted Zurich Insurance Group (“Zurich”), a leading multi-line insurer, in the set-up and launch of its first European Long-Term Investment Fund: Zurich Private Debt ELTIF (the “Fund”), aimed at providing individual investors and life insurance customers with access to opportunities in the desirable asset class of private debt, traditionally only available to professional investors.

Sponsored by Zurich Insurance Company Ltd, the Fund is a sub-fund of Zurich Global Private Asset Solutions SICAV S.A. and it is intended to be the first in a series of private market solutions, through which Zurich customers can access the performance and diversification benefits of these attractive asset classes. The Fund has appointed Waystone Management Company (Lux) S.A. as its external alternative investment fund manager, and the portfolio will be managed by Pemberton Asset Management. The Fund’s portfolio will largely follow Zurich’s investment approach, and, after the initial ramp-up period, it will offer monthly liquidity subject to certain conditions.

The Fund is domiciled in Luxembourg and will be offered to Zurich’ eligible investors and life insurance customers in Europe in 2024. Taking into account the multi-jurisdictional nature of the project, Arendt, as lead counsel of the transaction, acted as a main point of reference and coordinated the different law firms involved.  

This project stands out for its expansive cross-border scope and for the complexity introduced by (i) the envisaged marketing of the Fund to individual investors, (ii) the qualification of the Fund as a semi-open-ended fund, along with (iii) the application of the recently published ELTIF 2.0 regime. Indeed, the Fund benefits from the mentioned new  regime [1], allowing investors more flexible access to private assets, such as a well-diversified portfolio of loans to leading European mid-market companies, making it an attractive investment opportunity for both professional and individual investors.

Arendt teams involved

Investment Management:

Corinne Prinz, Partner

Giuseppe Di Gesù, Counsel

Marylisa Izzo, Associate

Dr. Stefan Staedter, Partner

Carlos Vera Montes, Associate

Tax Law:

Jan Neugebauer, Partner

Laure-Hélène Flament, Associate

[1] Regulation (EU) 2023/606 of 15 March 2023 amending Regulation (EU) 2015/760.