#London #UK #Pearl Diver #Aquanaut Fund #Risk Transfer

Pearl Diver Capital Introduces the Aquanaut Fund

On November 12, 2025, Pearl Diver Capital made an impactful announcement regarding the launch of its flagship fund, the Aquanaut Fund. This open-ended global interval fund is dedicated to Significant Risk Transfer (SRT) investments, aimed at providing financial institutions with much-needed capital relief.

Background on Pearl Diver Capital

Pearl Diver Capital is a seasoned investment manager that has carved a niche in structured credit and portfolio risk-transfer strategies. The launch of the Aquanaut Fund aligns with the company’s ongoing commitment to deliver innovative financial solutions to institutional investors, particularly in the realm of SRT and capital relief transactions.

Unique Fund Offering

The Aquanaut Fund aims to raise up to $1.5 billion in total commitments, marking a significant step forward in the evolving landscape of risk transfer investments. By leveraging the accelerating institutionalization of the SRT market, the fund allows banks to optimize their regulatory capital—transferring portions of credit-portfolio risks to long-term investors. With this fund, investors can explore diversified access to corporate credit portfolios originated by reputable banks across Europe, the UK, and select markets worldwide.

Indranil (Neil) Basu, the founder and managing partner of Pearl Diver Capital, expressed enthusiasm for the fund, stating, "SRTs have evolved from niche bank capital tools into a mainstream credit asset class. With Aquanaut, we’re providing investors diversified access to credit portfolios that offer appealing risk-adjusted returns and low volatility—exactly what institutions are looking for in today's financial landscape."

Market Expansion and Growth

The timing of the fund’s launch comes in the wake of significant developments within the SRT investment domain. Recent transactions, such as Morgan Stanley’s collaboration with Blackstone, highlight the market's increasing complexity and depth. In addition, European banks like Société Générale and Santander have executed capital-relief portfolios exceeding EUR 75 billion, showcasing the robust interest and growth potential in this segment.

Reports from the IACPM Global SRT Insurance Survey indicate that insurers provided protection for approximately €3 billion of SRT tranches in 2024, up significantly from €1.2 billion in 2023. This trajectory underlines the vital role of SRT in global credit intermediation and its emerging stature as a mainstream investment class.

Fund Specifications

The Aquanaut Fund features:

• - Structure: A global open-ended interval fund with periodic liquidity windows.
• - Strategy: Investment in performing loan portfolios via first-loss or mezzanine tranches of synthetic risk-transfer structures. The fund's strategy is designed to cater to the needs of institutional investors looking for stable yet lucrative alternatives.
• - Target Size: $1.5 billion.
• - Pipeline: A diverse array of investments drawing from numerous banks across Europe and the UK, with plans to expand into North America and select emerging markets.

Conclusion

As institutional investors seek to navigate tighter regulatory capital regimes, the introduction of the Aquanaut Fund represents a strategic move by Pearl Diver Capital to facilitate capital-relief transactions at a time of growing demand. The fund aims to position itself as a leading independent platform in the SRT market, supporting banks and fostering a more fluid credit environment. With robust backing and a clear strategy, Pearl Diver Capital is poised for substantial growth and influence in the financial landscape.