Oddo BHF Asset Management has announced the launch its first European Long-Term Investment Fund. The fund is called the Oddo BHF Commit for Tomorrow Eltif and is structured in line with the Eltif 2.0 regulation, designed to open up private equity to a wider group of investors.
The fund focuses on financing solutions in energy storage and water treatment. Oddo BHF has classified is Article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR) which means it plans to prioritise environmental or social characteristics in its investment strategy. The fund will target investors in Luxembourg, Belgium, Germany, Austria, France and Italy.
The fund’s strategy includes secondary deals, primary investments, and co-investments to diversify the portfolio and enhance liquidity. It has been domiciled in Luxembourg.
With some four billion euro in assets under management, Paris-based Oddo BHF AM has a track record in private assets and raising capital.The Oddo BHF Commit for Tomorrow ELTIF will use the expertise of a 15-person team to initiate transactions, the firm said. The firm did not publicly state fundraising objectives.
Addressing client demand in Europe
Nicolas Chaput, CEO of Oddo BHF AM, mentioned the fund meets the demand for financing companies addressing societal challenges. “This new offering addresses demand from our European clients for access to a broader range of financing of companies that make a positive contribution to the societal challenges of today and tomorrow,” Chaput said in a press release.
The investment term is 10 years, with a possible two-year extension. Oddo’s Eltif is one of approximately 40 new Eltif 2.0 funds that are expected to be launched under a Luxembourg structure since new EU rules for this product came into force.
The finalisation of the regulatory technical standards for the Eltif2 regime is due to be completed by 17 April, when the European Securities and Markets Authority has to repond to the European Commission’s adjustments on Esma’s initial RTS proposal.