Wed, May 23, 2018
A A A
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. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven