With the private credit industry growing at pace, Mihai Florian, EM Debt Senior Portfolio Manager at RBC BlueBay, explains why EM corporates are in a stronger position than their DM peers and why a long, established track record in EM investing is key to understanding this nascent asset class.
A strong history in both alternatives investing and emerging markets
Our BlueBay investment platform has over two decades of experience managing hedge funds and alternative fixed income strategies, including private credit, with a long track record of strong performance. Sitting within RBC Global Asset Management, we manage over USD130 billion in fixed income and offer enhanced flexibility and diversified solutions across developed and emerging markets to meet our clients’ needs.
We have been investing in the emerging market debt (EMD) space since 2002, with over USD11.7 billion in dedicated AUM. With 26 investment professionals, the team averages 19 years of investment experience and covers the full universe of EM sovereigns and corporates (in both hard and local currency). An extensive track record investing in EMD means team members have significant experience in harnessing the dispersion of the asset class, capturing upside potential across the universe.
Looking back to the aftermath of the financial crisis, many developed market investors turned to alternative investment strategies, such as private credit, to enhance the yield in their portfolios, while others broadened their geographic reach to include EM assets, focusing primarily on liquid, public market strategies. However, given our long history in both private credit and EM, we saw the potential for an attractive, alternative approach, and one that remains largely untapped: performing hard currency loans to large, healthy EM corporates.
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Supporting documents
Click link to download and view these filesEmerging markets private credit: an attractive, alternative approach
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