Excited to be speaking at the PDI New York Forum 2024 taking place on September 17-18.
My panel discussed the key drivers fuelling speciality finance’s growth story with some of North America's leading investors, Avi Korn from KKR, Luke Duster from CRG LP, Eric Newman, CPA, CGMA from City of Stamford, and Mike Fang from Maryland State Retirement and Pension System
💡 Performance in Specialty Finance and Direct Lending: Specialty finance strategies offer more complexity but also potentially higher returns because of a "complexity premium," and added protections compared to more mainstream lending
💡 Balancing Exposure: For LPs, specialty finance offers diversification benefits, often with lower correlation to traditional corporate cash flows and thus providing resilience in times of economic downturn and a hedge in portfolios exposed to broader market volatility
💡Strategic Differentiation: Differentiating one specialty finance strategy from another involves mitigating risks through innovative structuring and underwriting. For example, asset-backed deals (such as equipment finance or solar loans) provide robust downside protection, while more esoteric opportunities like insured receivables from niche sectors (e.g., Greek export receivables) offer creative ways to diversify portfolios
Join us here: https://lnkd.in/epU4AE47
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