The ODDO BHF AM Private Assets team is launching its first European long-term investment fund. Called ODDO BHF Commit for Tomorrow ELTIF, it has been structured in accordance with ELTIF 2.0, a regulation meant to promote access to private equity by a greater number of retail investors.
The fund is managed under a strategy previously reserved for professional clients. It aims to finance solutions for addressing tomorrow’s challenges in fields such as energy storage and water treatment. It is classified “Article 8” under the EU’s Sustainable Finance Disclosure Regulation (SFDR).
With a track record more than 20 years in private assets and with almost 4 billion euros in capital raised, ODDO BHF AM began to develop an environmental thematic capability in 2020. ODDO BHF Commit for Tomorrow ELTIF will benefit from the know-how, and the management and research skills of a team of 15 experts possessing top-notch market expertise and networks to be able to initiate transactions.
According to the investment team, the fund’s allocation will combine secondary deals, which will enhance the portfolio’s diversification and liquidity profile, with primary investments and high- quality co-investments. By pooling their investments alongside institutional funds, investors could have greater investment opportunities and could be able to deploy capital more rapidly. ODDO BHF Commit for Tomorrow ELTIF is intended for distribution to a broad range of clients, particularly in Germany, Austria, Belgium, France, Italy and Luxembourg.
Nicolas Chaput, Global CEO of ODDO BHF Asset Management: “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.”
The fund incurs risks, including the risk of loss of capital. The investment is locked up for the life of the fund, i.e., 10 years, with a maximum possible extension of two years (subject to the discretion of the fund’s board of directors).
