Brighter Super and the JANA are among four Australian institutional investors that have committed a combined $705 million to a dedicated Australian portfolio investing in European middle-market lending.

The portfolio is managed by Arcmont Asset Management, the European private credit affiliate of Nuveen, and is made up of senior secured, unitranche and subordinated loans to European mid and upper-mid-sized companies, with a focus on non-cyclical, defensive sectors.

Two other Australian institutional investors, unnamed in the announcement, have also committed to the vehicle. Individual commitment sizes were not disclosed.

Brighter Super chief executive Kate Farrar said the investment reflected the fund’s focus on high-quality private credit opportunities capable of providing resilient income and diversification for members.

“Arcmont’s disciplined investment approach and deep European market expertise make the strategy a strong fit within our broader private market portfolio,” Farrar said.

JANA invested in the portfolio through its newly-established private credit trust, which it announced to the market in late August and which has already grown to $270 million in funds under management. The trust also has another mandate with Jefferies Credit Partners.

“Private credit has evolved into an increasingly important component of diversified portfolios, yet many of the highest-quality opportunities remain difficult for investors to access directly,” said Claire Simpson, head of investments for JANA Investment Trusts, in a statement accompanying the launch of the trust.

“As private credit continues to mature as an asset class, we believe the differentiator will increasingly be manager selection, efficient implementation and product design, portfolio construction and strong governance – not exposure alone.

Nuveen head of Australia Andrew Kleinig said the raise was a significant milestone for the manager’s Australian institutional partnerships and reflected growing appetite among local investors for income-generating private credit strategies.