Aviva Investors has launched a private debt-focused Long-Term Asset Fund (LTAF) with the creation of the Aviva Investors Multi-Sector Private Debt LTAF.

This is the third LTAF from Aviva Investors following the launch of its real estate- and climate transition-focused funds.

The new fund has received an initial £750m of investment capital from Aviva’s flagship My Future Focus default pensions solution.

Aviva Investors stated that the fund was open for allocations from external investors and would be “particularly appealing” to those looking to diversity returns from traditional asset classes, such as public equity and fixed income, as well as wider private markets allocations and single private debt strategies.

The fund aims to produce a diversified portfolio of investments from across the private debt spectrum and a range of sectors, including in real estate debt, infrastructure debt, structured finance, and private corporate debt.

Aviva Investors said the LTAF launch furthered its ambition to be the ‘go-to’ LTAF provider for the defined contribution (DC) pension fund and wealth markets in the UK.

“We are pleased to add a dedicated private debt solution to our suite of LTAFs, further positioning Aviva Investors as the largest provider of LTAFs for the UK DC and wealth market,” said Aviva Investors director of investments for wealth and advice, Daniel McHugh.

“Private debt is a key growth area for us, and we believe our multi-sector approach will best-capture relative value through the market cycle. This should give it potential to deliver strong risk-adjusted returns and diversification to pension schemes, whilst also meeting their liquidity needs.”

Aviva Investors chief distribution officer, Jill Barber, added: “The launch of our private debt fund continues our ambition to be the go-to LTAF provider for the UK’s DC and wealth markets, as we create a suite of funds which gives access to a range of asset classes and risk-return profiles.”

---