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