Macro uncertainty and volatility have been key features of the economic backdrop in recent years, and in emerging markets in particular, dislocations in pricing and capital availability have been felt acutely. Private credit investing – broadly speaking, non-bank lending to corporates – has come to the forefront, with stronger credit metrics in focus and investments in this space offering a haven from market volatility. The IMF estimates the size of the global private credit industry at just over USD2 trillion, and its rapid growth means that the industry looks set to play a role in financial markets for a long time to come.

This strong growth in private credit is also extending to emerging markets (“EM”). Fundamental changes in the banking sector following the financial crisis (with banks now subject to heightened regulatory and capital constraints), coupled with periodic bouts of market dislocation and a lack of alternative sources of capital, have resulted in us seeing a wealth of investment opportunities within EM private credit.

A strong track record in EM debt investing

Investing in both private credit and EM calls for a skilled team of experienced and specialist investors. BlueBay was established as one of Europe’s first specialist alternative credit managers in 2001, and we have since become one of the region’s largest specialist active managers of fixed income, entrusted to over USD125 billion in assets under management in global corporate and sovereign debt, rates and FX.

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