In our latest white paper, we take a closer look at private debt, aiming to broaden understanding beyond the common narrative tied to monetary policy and show that allocating to private debt can bring resilience, diversification and healthy returns to investors’ portfolios.
Private debt's growth does not hinge solely on shifts in monetary policy. While these factors may have influenced its trajectory, its expansion is rooted in its ability to fill gaps in credit provision left by traditional banking institutions.
Moreover, the characterisation of private debt as a singular asset class can be challenged, emphasising its diverse array of strategies and transactions. While direct lending and commercial real estate are acknowledged as dominant segments, we argue that the private debt universe is far broader and more multifaceted than commonly perceived, encompassing a spectrum of financing opportunities across various sectors and structures.
Looking ahead, we expect continued growth and evolution within the private debt market, with investors increasingly exploring new strategies beyond traditional avenues. Residential real estate and asset-backed financing emerge as particularly promising sectors, providing attractive risk-return profiles and diversification benefits in an environment of heightened market volatility and uncertainty.
Download our white paper for more on private debt and projected future trends.
Colin Greene
Nicolas Roth
Kayte Hodgson
Senior Investment Specialist, Private Markets
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