Investors

In a podcast released this week, Raymond Wright of London CIV broaches the issue of systemic risk in private debt. If LPs are concerned, GPs should be too.

In the latest Private Debt Investor Podcast, Raymond Wright of London CIV tells of his wariness around loans passing from regulated bank balance sheets to an unregulated market. But he has high hopes for the asset class in areas such as asset-based finance and secondaries.

Trade group calls for LPAC consent in some cases, and for new fund documents to cover usage and limits.

Regulatory concerns focus on private debt’s perceived growth into new areas – but capital is flowing into an already well-trodden part of the market.

The deal follows a number of major commitments to European private credit from the Abu Dhabi sovereign wealth fund.

The overturning of a plan to increase SEC oversight leaves private debt continuing to attract scrutiny from a wide range of organisations – including LPs.

NAV’s inherent synergies with secondaries means the strategy is gaining significant traction among East Asian LPs.

LPs at PDI’s Tokyo Forum on 27 June outlined their expectations around transparency, tax structuring, reporting and GP ownership.

The move is the latest to offer private markets funds, including private credit, to a wider range of mass market investors.

Protections weakened, LPs shoulder the burden; exempt managers not ‘out of the woods’.