"The hunt for high-quality yield due to historically low and lower rates is here to stay given the pandemic". The grind down in yields across the credit curve, along with the Fed’s buying of publicly traded corporate credit, has created opportunities for insurance companies that need yield but don’t want to necessarily increase their capital associated with going down in credit quality. Aberdeen Standard Investments has a long track record of managing private market strategies spanning real estate, private equity, infrastructure, real assets and private credit as well as having developed a number of innovative private markets solutions. Our private credit expertise includes middle market corporate credit, corporate private placement debt and infrastructure debt. Prior to joining Voya, Virginia was with Wells Fargo Corporation holding various analyst positions. Private Credit Flexible, solutions-oriented senior and junior credit for the lower middle market with underwriting focused on cash flows and enterprise value. As with private equity, ESG integration in private debt can happen throughout the investment lifecycle, from sourcing and diligence, through exit. Bringing a unique joint practitioner and academic perspective to the topic, this is the only available text on private equity truly international in focus. Private Credit Private credit represents part of the broader alternatives universe, referring to non-traditional assets relying to some degree on an illiquidity risk premium to help drive excess returns. We focus on direct, non-investment-grade credit investment solutions, in both private and public markets as well as on rescue financing and distressed debt opportunities. Should a borrower fail to make a payment, or default, this may affect the overall return to the lender. credit," also known as "private placements" (in this paper we use both terms interchangeably). There is also another factor that has made this sector increasing attractive to insurers of all sizes. Private credit covers a broad spectrum, from opportunistic and distressed debt, to middle market investing, and specialty finance. This allows investors to turn a profit if the company recovers. Private markets refer to investments in equity and debt of privately owned companies. Strategic primary capital in private equity-owned . check_circle. Combine the improved spread to public fixed, make whole provisions and lower credit losses compared to similar industry/ratings of corporate debt and we have averaged over 120bps of additional return over the past decade. Building on the success of the author’s previous book Beyond the J Curve:Managing a Portfolio of Venture Capital and Private Equity Funds, this work covers new and additional material and offers advanced guidance on the practical ... Also, issuers are willing in many cases to offer differing tenors of investment and given the heavy non-US issuance borrowers are also willing to provide debt in varying currencies. Get the recent popular stories straight into your inbox, Coverage of the latest insights, analysis, and interviews in the insurance asset management sector from the perspective of market participants and influencers, John Simone, Managing Director—Head Insurance Solutions Group, Voya Investment Management, Revisiting private credit: what’s old is new again. Found inside – Page 225clearly saw the private credit market as the most efficient source of ... developed an elaborate argument as to why private, familial investment in the ... We lend and invest alongside private equity sponsors, providing patient, noncontrolling junior capital—including traditional subordinated and second-lien debt and structured equity—to established businesses that are led by experienced management teams aligned with their investors. Our private credit strategies focus on investment opportunities in private debt issued by companies that have little or no access to traditional sources of financing. Because private credit can be debt investments in non-investment grade borrowers, the risk of default may be greater. By one estimate, the total is likely to top $1 . Found inside – Page 139Credit Allocation and the Quality of Investment Chapter 7 discusses the alternative ways ... One potential advantage of relying on private credit creation, ... Includes all private credit direct investments made by HarbourVest since January 1, 2003, excluding certain custom accounts that may make investments outside of HarbourVest's core private credit direct investment strategy, (e.g., industry, sourcing, return profile). P rivate credit offers distinct advantages and appeal in a low return environment, but investors should be aware that behind the name is a Alternative Credit is Ares' home for investment opportunities that fall outside of traditional, well-defined markets such as corporate debt, real estate and private equity. Credit Suisse. Approved For: Private Credit Platform. It is a subset of "alternative credit". She is a CFA® Charterholder. Our private credit team draws on its vast experience investing across the capital structure and a wide array of industries to deliver flexible, value-added solutions, including private credit first & second lien loans, private credit mezzanine debt & recapitalizations. Although the perception persists that private placements are illiquid, it is actually a byproduct of the fact that the primary investors (mainly life insurance companies) are "buy-and-hold" investors. Found inside – Page iIndexing appears to be unstoppable. But, in The End of Indexing, investment veteran Niels Jensen presents a different vision. Prior to joining Voya, he worked as a commercial and investment banker for SunTrust Banks, Inc. Chris earned a BS from the Georgia Institute of Technology. Portfolios that invest in private credit may be leveraged and may engage in speculative investment practices that increase the risk of investment loss. Private credit is an asset defined by non-bank lending where the debt is not issued or traded on the public markets. Virginia O'Kelley is the portfolio manager for the private credit team at Voya Investment Management, responsible for underwriting and managing the private investments on behalf of Voya's third party clients. Our Private Credit investment team has a diverse range of experience across different strategies focused on minimizing risk and maximizing return. Found inside – Page 159Like other credit investors, it would need to engage in fundamental credit ... problem: whenever the monetary authority is investing in private credit, ... Found inside... private assets, whether equity, real estate, or credit, are challenging, ... and (iii) the reduction in liquidity for private credit investments is ... The term 'private debt' is typically applied to debt investments which are not financed by banks and are not issued or traded in an open market, while the word 'private' refers to the investment instrument itself and not necessarily the borrower - i.e., public companies can borrow via private debt just as private companies can. In recent years, stock market investing has been proven unstable and not very rewarding. In fact, many people have seen their retirement and personal holding accounts dwindle. This new book provides an alternate to investors. Periods greater than one year are annualized. © 2021 Voya Investment Management LLC. How To Invest in Debt shows that if you're willing to do the work, you can profit from debt. "Investment grade private credit is an investment sector that more and more insurance companies are looking to add to their portfolios. Webinar: U.S. Lower Middle-Market Private Credit in 2021 - An Attractive Opportunity Set for European Investors? Please Sign In or Register to leave a Comment. Therefore, Monarch has implemented an ESG Investment Framework across our main federal projects and funds. Issuing debt securities is how governments and corporations raise capital, taking investors money now. Private debt funds, serving as direct lenders to middle-market companies and sources of credit for leveraged buyouts, promised to provide the higher yield investors wanted. 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