Private equity firm the CVC Group is planning to raise Eur300 million or US$389 million from investors through flotation of one of its credit funds. This would be overseen by the asset management arm of the firm.

The asset manager CVC Credit Partners said that it is to list CVC Credit Partners European Opportunities Ltd on the London Stock Exchange. The listed firm invests in sub-investment grade debt markets.

A contraction by known lenders such as bank from the credit market as well as company refinancing needs have created a niche market for credit managers to trade loans, according to CVC's chairman Richard Boleat through a statement.

When CVC Cordatus Group and the Apidos Capital Management firm combined in 2011, it formed CVC Credit Partners. It currently has US$8.5 billion in assets under its management portfolio and its funds are invested in sub-investment grade credit instruments, such as loans, bonds, subordinated debt as well as structured credit facilities.