Sat, Sep 22, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors seek niche opportunities in private credit

Wednesday, May 16, 2018

Bailey McCann, Opalesque New York:

Allocators of all types have been plowing money into private credit opportunities at a record pace in the past few years. According to data from Pensions & Investments, private credit strategies saw $10 billion of inflows in 2017 a 57 percent increase over 2016.

There seems to be an appetite for more - investors packed two rooms at investment consultant NEPC's client conference in Boston today to listen to a panel on niche private lending strategies. The panel focused on lending that falls in the gap between venture debt and basic cashflow lending. Funds in this space provide financing to companies that aren't quite mature enough to stand on their own but will be able to with a little bit of funding to get to the next level.

"There are a lot of opportunities if you are willing to do the work," said Aron Dantzig, Managing Partner at Capital IP Investment Partners from the stage. "We're using covenants, we're setting revenue milestones and we are usually a senior secured creditor so there are guardrails in place for investors."

For investors that are willing to do the work, or at least back a manager that is the returns can be significant. Panelists were generally targeting mid-teens or higher unlevered IRRs.

Investors are becoming more comfortable with the idea of private credit even at an early stage as they hunt for yield across the credit landscape. That hunt has lead to a lot of competition and cove......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. The incredible shrinking hedge fund, For hedge fund stars, being right in 2008 proved to be a curse[more]

    The incredible shrinking hedge fund From Bloomberg: You'd be forgiven for thinking the hedge fund industry might be starting to rebound. Industry assets are at a record $3.2 trillion this year, and a brand-new ?rm just brought in an unprecedented $8 billion. But the reality isn't so rosy.

  2. SWF: Saudi Arabia's sovereign wealth fund raises $11bn loan with 15 banks[more]

    From Reuters: Saudi Arabia's sovereign wealth has raised an $11 billion loan from a total of 15 banks, the Maaal financial news website reported on Tuesday, citing unnamed sources. A source with direct knowledge of the matter told Reuters last month that the Public Investment Fund (PIF) will p

  3. Hedge fund billionaire spells out America's worst nightmare, Sir Michael Hintze: Response to global financial crisis elevated populism[more]

    Hedge fund billionaire spells out America's worst nightmare From SMH: Billionaire hedge fund manager Ray Dalio effectively spelled out what doomsday looks like for the US on live television. The founder of Bridgewater Associates predicted the US economy is about two years from a downtur

  4. Lehman's carcass has handed huge profits to distressed funds[more]

    From Bloomberg: It was a bold move: buy at Lehman Brothers's darkest hour. But a decade after Lehman's collapse, a handful of hedge funds that bought up the bank's debt for pennies on the dollar have made even more money than seemed possible. More than $124.6 billion has flowed to Lehman credi

  5. 2008 Crisis Review: Kehoe: Hedge funds better off now than pre-crisis, Zombie hedge fund stakes haunt investors a decade after Lehman, Most of the 'big shorts,' who thrived during the financial crisis, have faltered since 2008, The financial crisis killed hedge-fund performance[more]

    Kehoe: Hedge funds better off now than pre-crisis From Bloomberg: Investors are in a better position today than prior to the financial crisis in terms of the liquidity that is available, according to Tom Kehoe, Global Head of Research at AIMA. Elaborating on a new report regarding he