French AM launches fund to bolster companies hit by Covid-19
Zencap Asset Management has launched a new debt strategy designed to invest in and support French companies that have been hit by the Covid-19 pandemic.
The Rebond Tricolore fund will use of a wide range of financing instruments designed to adapt to the current needs of businesses. It will be able to offer unitranche debt, junior or subordinated debt or even convertible bonds depending on the specific needs of each company.
The investments will be designed to strengthen the respective companies’ balance sheets and allow them to benefit from a new source of financing. Zencap said the money could be used for new investments, mergers or consolidation of existing efforts.
The target companies must have a 2019 turnover of more than €50m in most cases and are likely to be drawn from sectors that have experienced specific hardship and may also have stronger dependence on government support.
Zencap AM will also look closely at the ESG credentials of potential borrowers.
This fund is part of the Insurer-Caisse des Dépôts Relance Durable France investment programme coordinated by the French Insurance Federation (Federation Française Assurances) and seeded with €40m by the Macif Group. The fund, which was launched in July 2020, aims to allocate €120m.
