What advantages can a specialist private debt fund manager offer?
A specialist private debt funder is focused on understanding and identifying attractive risk adjusted return opportunities in the complex and growing private debt market.
A specialist private debt manager will typically construct a diverse portfolio aimed at meeting a particular targeted return benchmark and investment parameters having undertaken the necessary research, analysis and due diligence on selected lenders and underlying assets.
The manager will typically manage the portfolio on an ongoing basis and ensure all operational matters are attended to including investor reporting, cash management and administration. The manager will typically monitor performance and actively manage the portfolio over time in response to changes in inter alia the macro economic environment, return expectations, the private debt asset class, specific asset classes within private debt, lender originations and operations, and borrower behaviour.
A specialist private debt manager will also typically be known in the market and thus may obtain privileged access to lenders and assets.
Therefore, this can provide a cost-effective alternative to seek exposure to a diversified pool of private debt assets without the significant upfront and ongoing work involved in ‘going it alone’.