"The opportunity in private credit lies in asset-based lending, real estate debt and flexible, value-oriented investment strategies," said Christian Stracke, president and global head of credit research at Pimco, in a press statement issued on 30 April 2025. Photo: Pimco

"The opportunity in private credit lies in asset-based lending, real estate debt and flexible, value-oriented investment strategies," said Christian Stracke, president and global head of credit research at Pimco, in a press statement issued on 30 April 2025. Photo: Pimco

Pimco has launched a Luxembourg-based evergreen diversified private credit fund, providing European wealth investors with access to multi-sector private lending including asset-backed loans, real estate debt and consumer and corporate credit, as part of its $191bn alternatives platform.

Pimco has launched the Pimco Diversified Private Credit (DPC) fund, an evergreen private credit strategy structured as a Luxembourg-domiciled SCA qualifying as a UCI Part II fund, designed to offer European wealth investors access to a broad range of private lending sectors. The fund was constituted on 26 March 2025 and officially inscribed on 11 April 2025.

Fund structure and management

Announced in a press release on 30 April 2025, the DPC fund will be managed by an experienced investment committee whose members average 22 years of experience in multi-sector private lending. The committee includes Dan Ivascyn, managing director and group investment officer, along with managing directors and portfolio managers Kristofer Kraus and Mathieu Clavel.

The fund is designed to operate as a semi-liquid vehicle, allowing wealth investors across Europe exposure to private loans secured by various types of collateral. These include hard assets such as auto, equipment or residential loans, as well as non-consumer-related credit assets like aviation finance and data infrastructure. The fund will also invest in residential mortgages, consumer credit, corporate credit and commercial real estate loans.

Investment strategy

Pimco stated that the DPC fund would employ a diversified, relative value approach across its investment sectors. The stated aim of this strategy is to construct a portfolio with downside protection while generating both income and long-term capital appreciation.

Christian Stracke, president and global head of credit research at Pimco, commented that the rapid growth of private markets is creating structural alpha opportunities akin to those observed in public markets over the past five decades. He identified asset-based lending, real estate debt and flexible, value-oriented strategies as key areas of opportunity within the private credit space.

The DPC Fund is part of Pimco’s $191bn Alternatives platform, which includes $162bn in assets under management within alternative credit and private strategies. The firm said that this launch represents a significant development in its range of semi-liquid, income-oriented investment solutions for European wealth clients.

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