Geneva-based asset manager Unigestion has created an allocation tool designed to help investors navigate private debt opportunities.
The range of options within private debt makes it difficult for investors to compare the different approaches, explained Kay Olschewski, portfolio manager in the private assets team at Unigestion. The tool enables comparision of different strategies based on the investor’s own objective taking account of leverage, expected defaults and recoveries as well as returns, said Olschewski.
As it stands, there are around 30 different strategies available for comparison in the tool ranging from distressed to UK real estate and encompassing senior corporate debt as well as infrastructure.
The allocator tool aims to identify the strategy that best fits investors’ individual requirements. It identifies where in the capital structure the strategy sits as well as providing information on cash flows and producing an estimated net IRR for investors.
Unigestion based the tool on a similar resource it had already created for wider private assets allocation, Olschewski added. The new private debt comparator will be kept up to date with information from private debt and private equity funds as well as market research on default and recovery rates.
Investors have found the range of private debt options offering returns ranging from five percent up to 20 percent, difficult to get to grips with. Unigestion will use the tool to help its institutional clients navigate the market.
Unigestion has €16.6 billion in assets under management, 94 percent of which is managed on behalf of more than 270 institutional investors. Its investment strategies include equities, hedge funds, private assets and cross asset solutions. Unigestion is headquartered in Geneva and has offices in Zurich, London, New York, Paris, Singapore, Toronto and Montreal.