Andy Thomson
It’s a topic that will be under consideration at our upcoming PDI Germany Forum: the likelihood of risk-averse investors being tempted by private debt’s ‘next big thing’.
Insurance companies are already private debt’s most committed supporters, but the relationship has the potential to deepen further.
In a podcast released this week, Raymond Wright of London CIV broaches the issue of systemic risk in private debt. If LPs are concerned, GPs should be too.
In the latest Private Debt Investor Podcast, Raymond Wright of London CIV tells of his wariness around loans passing from regulated bank balance sheets to an unregulated market. But he has high hopes for the asset class in areas such as asset-based finance and secondaries.
Regulatory concerns focus on private debt’s perceived growth into new areas – but capital is flowing into an already well-trodden part of the market.
The overturning of a plan to increase SEC oversight leaves private debt continuing to attract scrutiny from a wide range of organisations – including LPs.
Whether managers in the asset class are sufficiently incentivised has become a point of contention.
PDI discusses the role of subordinated debt with Brookfield Asset Management's infrastructure debt co-head Ian Simes.
The Australian sovereign wealth fund’s total portfolio approach means it does not have set allocations, and every investment class – including private debt – is in competition for dollars at any given time. PDI discusses this approach and its implications with James Waldron and Shikha Gupta.
Amid a revived broadly syndicated loan market, private debt firms must decide whether to keep competing.