Innovative Lending: Your Pathway to Diverse Debt Investments.
Global Private Credit Funds offer investors an opportunity to engage in non-bank lending,
providing debt capital to businesses not typically serviced by traditional financial
institutions. This segment of the financial market presents a unique blend of
potential returns and portfolio diversification, appealing to investors seeking
alternatives to conventional fixed-income assets.
Global Private Credit Funds are investment vehicles that specialize in providing debt
financing to companies outside of traditional banking channels. These funds often target
mid-sized companies, offering various debt structures such as direct loans, mezzanine
financing, distressed debt, and more.
Why Invest in Global Private Credit Funds?
Investing in Global Private Credit Funds can offer higher yields compared to traditional
fixed-income investments, with the added benefit of diversifying credit exposure. These
funds play a critical role in financing businesses, often accompanied by detailed
covenants and security provisions that provide layers of protection for investors.
Global Private Credit Market Trends
Private debt has firmly established its presence within the portfolios of many investors,
providing a hedge against inflation and interest rate fluctuations, along with an attractive
risk-return balance. The projections indicate that private debt will maintain its position
as one of the fastest-growing alternative asset classes in the coming five years, with
assets under management (AUM) forecasted to reach $2.3 trillion by December 2027, reflecting
a compound annual growth rate (CAGR) of 10.8%. (Source: Preqin)
The total Private markets assets under management (AUM) reached $11.7 tn as of June 30,2022.
(Source: Mckinsey & Co.)
Today, private credit represents more than 20% of the US market for below-investment-grade
credit, up from 5% in the mid-2000s , and plays an important role in financing large
transactions. (Source: Blackstone)
The total capital raised by 137 private debt funds closed during the first three quarters of
2022 $172.1 bn (Source: Preqin)
Source: Blackstone - Advisor Trends in Private Markets 2023
According to a recent survey conducted by Blackstone among top-ranked advisors, there
has been a notable surge in the adoption of alternative investments. Specifically, 71%
of advisors now allocate a portion of their clients' portfolios to alternatives, with
allocations ranging from 6% to 20%.
Furthermore, the survey revealed that 15% of these surveyed advisors allocate more than
a fifth of their client portfolios to alternative investments, demonstrating consistency
with the previous year's data.
Attractive Yields: Typically offer higher returns compared to traditional
fixed-income securities.
Diversification: Provides a means of diversification within a broader
investment portfolio.
Credit Protection: Investments often come with protective covenants and
collateral, offering a level of security.
Lower Volatility: Private credit markets can exhibit lower volatility
compared to public equity and debt markets.
Supporting Business Growth: Contributes to the growth of mid-sized
companies which might not have access to traditional bank financing.
Credit Risk: The risk of default or non-payment by borrowers can be higher
than in traditional lending.
Illiquidity: Private credit investments are typically illiquid with longer
holding periods.
Interest Rate Risk: Susceptible to changes in interest rates, which can
affect the value of debt investments.
Complex Structures: Private credit arrangements can be complex, requiring
thorough due diligence and understanding.
Market Conditions: Economic downturns or adverse market conditions can
impact the ability of borrowers to repay debt.
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Customized as per the requirement of user. Not a traditional form of bank loan.
