Tue, Jan 21, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investors stick with private credit

Thursday, November 21, 2019

Bailey McCann, Opalesque New York:

Private credit continues to grow as investors of all types hunt for yield, according to a new survey from The Alternative Credit Council (ACC) and global law firm Dechert. However, as more money moves into the asset class, it's likely risk-taking will increase and returns will go down.

The survey includes responses from 30 industry leaders and data from 60 firms managing close to $400 billion in private credit assets.

The data show that 68% of survey respondents plan to increase their lending in the SME/mid-market space, despite the sense that this market is suffering from saturation. Distressed, real estate and asset-backed lending are among the other more popular growth strategies. Private credit managers are also taking advantage of ongoing bank deleveraging in Europe - half of the respondents plan to deploy capital there.

Survey participants did show signs of realism however, they readily admit that some of the opportunities are already overbought and there is a risk that a global slowdown or market correction will dampen portfolio performance. Speaking at an event for reporters announcing the report, private credit managers noted that as investors continue to pile into the asset class it's likely that managers will have to take more risk as pockets of opportunity get smaller and more competitive. "The provider of capital has less leverage," said Benjamin Fanger, founder of ShoreVest Partners.

Growing instit......................

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. Siguler Guff closes Small Buyout Opportunities Fund IV at $1.58bn[more]

    Laxman Pai, Opalesque Asia: Private investment firm Siguler Guff & Co. has raised $1.58bn for a fourth fund - Small Buyout Opportunities Fund IV - to invest with small buyout managers and directly in their portfolio companies. The New York-based multi-strategy private equity investment firm

  2. J.P. Morgan makes strategic investment in tech company for alternatives[more]

    Laxman Pai, Opalesque Asia: J.P. Morgan has taken an equity stake in Arcesium, an investment-management technology business that D.E. Shaw & Co. launched as an independent company in 2015. New York-based Arcesium LLC is an investment management technology and services firm, offering services i

  3. People: Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud, Swiss investment boutique appoints CIO & CCO[more]

    Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud From Standard: Hedge fund tycoon Lord Fink has been named chairman of bank software start-up Bud, which is backed by HSBC and Goldman Sachs. Fink, dubbed the "Godfather of hedge funds" for his role at Man Group, inves

  4. Legal: Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges, Partners Group sued over alleged breach of non-disclosure agreements[more]

    Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges From Bloomberg: A Toronto man who served time in prison after his hedge fund collapsed later concealed his identity and criminal past to defraud investors of $30 million through an initial coin offering of digital

  5. Regulatory: Woodford fund shows vulnerable side of shadow banking, regulator says, A new framework for Cayman's regulatory regime for investment funds[more]

    Woodford fund shows vulnerable side of shadow banking, regulator says From Reuters: The closure of the Woodford fund in Britain showed how the $184 trillion shadow-banking sector can be vulnerable even in normal market conditions, the Financial Stability Board (FSB) said in a report on