Asset-backed finance

Investor demand for private debt has flourished, but strong alignment will distinguish the highest-quality lenders, say Corinthia Global Management’s Craig Shirey, Mark Wilton and Boris Okuliar.

Speaking at a PEI Investor Council event in Sydney, the superfunds said their debt portfolios were performing well and that recent high-profile fund redemptions did not change market fundamentals.

According to some, the future is at stake (and perhaps be worried if your firm name begins with ‘B’), but there is little in the way of evidence that private credit faces a crisis that spans the entire asset class.

The strategy that sits between debt and equity is seeing increasing demand from investors.

Retail investor redemptions are not being viewed as a troubling sign for private credit GPs, panellists say, echoing US SEC chair’s sentiment that asset class is not facing systemic issues.

LibreMax Asset-Backed Income Fund targets asset-backed finance and traded structured credit opportunities.

Asset-backed strategies and managers prioritising local origination are best positioned to succeed in Europe as the market grapples with testing macro conditions, says Adam Baghdadi, managing director at Arrow Global.

Primary Wave’s fourth and largest such fund exceeded its original $1.5bn target fundraise and hard cap.

The fund beat its target and expects to make more than 50 loans to European borrowers.