Investors tempted by nascent asset class private debt

Investors are looking to increase their allocation to private debt as 60% believe the market will grow, research shows. Fund services provider Elian surveyed 88 alternative investment professionals and found that 41% of investors are looking to increase their allocation to private debt in the next 12 months. Within that group, 15% said that they would increase their allocation significantly, while 29% said it would remain the same. The research also found that 73% of investors said their investments had met or exceeded expectations, while only 13% reported investments falling short of their expectations. Private debt, seen as a diversification tool, is viewed as providing better downside protection than bonds while also having equity-like returns and only 7% think the market will shrink over the next year. Charles Le Cornu, head of private equity at Elian, said that as institutional investors continue to face low yields from the fixed income space, there has been a significant increase in demand for forms of alternative lending, including private debt despite it being in its “infancy”. ©2016 funds europe

Executive Interviews

INTERVIEW: ‘It is what it is’

Dec 22, 2016

Jeff Conway, regional chief executive for State Street, talks to David Stevenson about regulation and how the firm will handle the challenge of tech disruption.

MASHREQ CAPITAL INTERVIEW: A new direction

Dec 22, 2016

The new chief executive of Mashreq Capital talks to George Mitton about fund launches, management style and why he is the right person for the job.

Roundtables

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.

EMERGING MARKETS ROUNDTABLE: The re-emergence

Jan 03, 2017

2016 was the year emerging markets returned to the spotlight, as they regained ground since the 2012 sell-off. Funds Europe asked our panel if this appetite will persist in 2017.