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Patrick Stutz Benedicte Gravrand, Opalesque Geneva:
Bayshore Capital is a private, research driven investment advisory firm headquartered in Tampa, Florida, managing $250m. The firm made its first private debt allocation in 2009 and has invested $125m in 15 strategies so far. Swiss-born CIO Patrick Stutz talked to Matthias Knab on Opalesque TV from Bayshore's new London offices.
Private debt addresses many of the issues that investors have these days, Stutz says; low rates, low return expectations across the board, a lack of safe assets for those seeking protection, and lastly, mark-to-market risks.
Private debt ticks a lot of investment boxes, he adds: (1) structural tailwind, with bank de-leveraging being the main reason for the opportunities in private debt; (2) a high demand for funding; (3) the investment presents a narrower range of outcomes; (4) there is not a lot of competition in private debt as information is asymmetric, and so only skilled investors have the advantage, and lastly; (5) private debt is good for downside protection.
"Unless we go back to the pre-crisis area, when banks were lending and interest rates were higher," he says, "the only way for private debt is to further grow. Lending markets are disrupted. Only the most pristine borrowers can tap the low rates that are out there in the market. On the other hand, a lot of capital has been deployed in the space. I think the big concern...................... To view our full article Click here
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