Private debt: Embracing the full breadth of the asset class
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.
Demand for private debt continues to grow, particularly from European pension funds and insurers looking to reallocate risk in search of additional returns, reliable income streams and portfolio diversification – while minimising losses – to help them meet their investment goals.
European investors account for a quarter of institutional investors in private debt globally, second only to US investors, according to Preqin. Institutional investors that are already active in the asset class have developed a better understanding of the investment processes and the risks that can be associated with private debt investing. Nevertheless, most of these investors are currently below their target allocations to the asset class, but with many institutions indicating plans to further increase their allocations in the coming years and with new investors set to enter the asset class, the scope for further growth is considerable.
How are lenders navigating the late stage of the cycle and how can investors make the most of opportunities in a diverse yet evolving market?
Read the complete white paper at the link beneath Related Files