What disciplines do I need to understand and invest in Private Debt?

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These include, but are not limited to:

Credit analysis – to understand the risk profile of underlying assets.

Debt structuring – to understand the risk profile of the various investment structures offered.

Legal – vital in the analysis of investment structures; and  managing contractual risk when appointing a new lender.

Origination – to understand the intricacies of how, by and to whom loans are originated and the resultant implications as to asset quality.

Investment management – to enable the appropriate construction and management of a pool of assets to achieve the desired investment objectives.

Operations– to enable the understanding of business operational matters (including with respect to lenders and outsourced service providers).

Risk management – enabling the identification and management of various risks, including investment, operational, compliance, governance, credit, liquidity, market and strategic – at lender, portfolio, or macro levels..

Economic – to understand how economic conditions may be changing and what impact this could potentially have on the various exposures within the portfolio and on the portfolio itself and inform its go-forward positioning.

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