Sponsored

Investors are increasingly turning to evergreen structures and bespoke mandates as they seek to diversify their private credit exposures, say Partners Group’s Lori Pomerantz and Andrew Bellis.

Despite a proliferation in asset-backed finance partnerships in recent months, possessing in-house origination and servicing capabilities is critical to delivering predictable returns, says Rithm Capital’s chief executive officer Michael Nierenberg.

Mid-market direct lending, asset-backed finance and even commercial real estate continue to generate attractive opportunities despite widespread macro volatility, says Chris Hedberg, AllianceBernstein’s head of capital formation for pr­ivate alternatives.

Innovations in the private credit market that allow borrowers to achieve high levels of flexibility in their loans represent the next stage of the industry’s evolution, say Proskauer’s Philip Bowden and Alex Griffith, and Ares Management’s Michael Dennis.

As the private credit investor universe continues to expand, there are myriad opportunities on offer for managers that can handle its increasing complexity, says Nuveen’s chief executive officer Bill Huffman.

Asset-based finance’s cashflow-based nature and exposure to different areas of the PE market are acting as buffers against macroeconomic uncertainty, says Rithm Capital’s Michael Nierenberg in this PDI podcast.

In this podcast, Nuveen mid-market direct lending and investment-grade infrastructure credit leaders discuss why lenders who have built strong relationships with investors through market cycles are well-placed to benefit from market uncertainty.

There is now proof of concept that institutional and retail products can successfully be managed side by side, say Davis Polk’s Andrew Ahern, Oran Ebel, Christopher Healey and Leor Landa.

Asset-backed finance is only at the beginning of its growth journey as opportunities for stable returns continue to proliferate in the space, says Sridhar Bearelly, head of alternative credit at ICG.

Investors that are early to recognise the huge growth potential of royalties are well positioned to reap the benefits of innovation in the space, says Partners Group’s head of royalties, Stephen Otter.