More of the same

Investors are looking to private debt as a safe harbour.

A survey from NN Investment Partners published recently revealed that 14 percent of investors canvassed were planning to make their first allocations to private debt this year, while 45 percent of existing investors in the asset class said they intend to increase their exposure over the coming 12 months.

Asset managers that PDI has spoken to recently contend that this makes sense. In an uncertain world, committing long-term capital in exchange for an illiquidity premium and a predictable return that – while not shooting out the lights – should at least be highly respectable, has a lot to be said for it.

One source said it can be tough work to make what he described as a “boring pitch” to investors for a direct lending strategy that, while prosaic, would more precisely match a given investor’s requirements than any other investment option on the menu.