📣 We were delighted to attend the Private Debt Investor conference this week in London, which explored key topics in the private credit market. Our CEO Sabrina Fox spoke on a panel regarding challenges of data reliability and quality, a challenge we have been tackling at ELFA. See below some of our insights, and some of our resources that can be used as guidance to support transparency in the market. 1. Private Credit: An asymmetric asset class for dealing with defaults. Navigating defaults in private credit is complex and varied. Different managers have different strategies, from in-house capabilities to third-party evaluations. So far, these are untested waters. 2. Valuation dilemma for private credit managers: Private credit managers employ various valuation models and timelines, leading to inconsistency. Dive into ELFA's technical guide for insights on navigating valuation challenges which can help with this: https://lnkd.in/d6HFKexw 3. Collaboration or Competition? The relationship between private credit and equity during borrower distress hinges on reputation, asset type, and document flexibility. As more borrowers face difficulties, priorities may shift between relationships and end-investor interests. 4. Green energy transition: Lenders must engage with borrowers strategically during the energy transition - this might be when the borrower needs funding, or if they are growing. More engagement can be done in the private credit space which will help to ensure that the transition to green energy is met. 5. ESG reporting realities: GPs must scrutinize their ESG reporting to convey real impact. ELFA offers workshops and insights to foster consistency and transparency on ESG data, ultimately enhancing their ability to do so. Explore more in ELFA's recent publication, ESG Reporting and Engagement at the LP/GP level for Private Debt Funds - https://lnkd.in/ebyMKuHG #PrivateCredit #ESG #GreenEnergyTransition
European Leveraged Finance Association’s Post
More Relevant Posts
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𝗪𝗵𝘆 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗗𝗲𝗯𝘁’𝘀 𝗜𝗻 𝗗𝗲𝗺𝗮𝗻𝗱 𝗪𝗶𝘁𝗵 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 ➡ Investors are bullish. Preqin´s survey shows 90% say private debt performance has met or exceeded their expectations ⤴ 51% of LPs intend to increase commitments, and 40% to keep the same amount of capital in play – by far the highest numbers of any asset class 📈 Ideal Risk- Reward ratio 😍 Preqin forecasts an average IRR in private debt of 9.8% in 2022-2028 – which, given its lower risk profile 🔐 , doesn’t look bad alongside VC (14.3%), private equity (12.6%), secondaries (11.5%), and infrastructure (10.9%) Very interesting article from Shaun Beaney from Preqin https://lnkd.in/e2aDGUE5
Why private debt’s in demand with investors - Preqin
deal.town
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Alternative credit strategies such as direct lending, energy infrastructure credit, real estate debt, and collateralised loan obligations can provide shelter for portfolios during uncertain times. Read more: https://ow.ly/JOYh50TT3BZ Partner content with Nuveen #alternativecreditstrategies #directlending
Investing for resiliency with alternative credit | Partner Content | AsianInvestor
asianinvestor.net
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We expect the asset class of private debt to continue its growth trajectory, and forecast $3.5 trillion in global AUM by year-end 2028. The reasons behind the ongoing growth momentum are multi-faceted, including borrowers’ desire for certainty of execution, investors’ desire for diversification, structural shifts in public debt markets, and tightening bank lending standards. For more detail, please see the BlackRock 2023 Private Debt Primer. https://1blk.co/3uwPatE
Private debt primer - Institutional | BlackRock
blackrock.com
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Private debt has been one of the most resilient asset classes through the current cycle of rising interest rates. What is the market outlook for 2024? White & Case's new European leveraged finance report discusses: https://ow.ly/xTOp50Qz2Z7 #PrivateDebt #InterestRates
Q&A explainer: Private debt in a changing market | White & Case LLP
whitecase.com
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Private debt has been one of the most resilient asset classes through the current cycle of rising interest rates. What is the market outlook for 2024? White & Case's new European leveraged finance report discusses: https://ow.ly/i62v50QxaFu #PrivateDebt #InterestRates
Q&A explainer: Private debt in a changing market | White & Case LLP
whitecase.com
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Private debt has been one of the most resilient asset classes through the current cycle of rising interest rates. What is the market outlook for 2024? White & Case's new European leveraged finance report discusses: https://ow.ly/aci050QxvYx #PrivateDebt #InterestRates
Q&A explainer: Private debt in a changing market | White & Case LLP
whitecase.com
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💡 Pimco Warns of Overvaluation in Private Credit 💡 PIMCO has raised concerns over private credit markets, highlighting that returns no longer justify the growing risks. According to CIO Mohit Mittal, complacency is spreading in leveraged credit markets, and private credit now offers only a 190 basis point premium over public markets—less than the 200 basis points typically expected. Pimco sees higher yields in public fixed income, prompting a preference for quality public debt investments. 🔎 Follow us for more private market insights! #PrivateCredit #InvestmentStrategy #Pimco #LeveragedFinance #PublicMarkets #DebtMarkets #PrivateEquity #FixedIncome #CreditMarkets #InvestmentOpportunities
Pimco Says Private Credit Is Overvalued as Complacency Spreads
finance.yahoo.com
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Private debt has been one of the most resilient asset classes through the current cycle of rising interest rates. What is the market outlook for 2024? White & Case's new European leveraged finance report discusses: https://ow.ly/KOc550QxmhS #PrivateDebt #InterestRates
Q&A explainer: Private debt in a changing market | White & Case LLP
whitecase.com
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Private debt has been one of the most resilient asset classes through the current cycle of rising interest rates. What is the market outlook for 2024? White & Case's new European leveraged finance report discusses: https://ow.ly/jCUZ50Qxtq4 #PrivateDebt #InterestRates
Q&A explainer: Private debt in a changing market | White & Case LLP
whitecase.com
