Direct lending

LPs from the region are looking more closely at workout capabilities, deal sourcing and back-office staffing when assessing new and existing managers.

The asset class is attracting growing attention from family investors amid volatility and high interest rates. PDI examines which strategies are being employed.

It may be less publicly discussed in this political climate, but the subject has not disappeared as a key part of risk management.

Sustainability should not be treated as a sub-segment of private debt, but as something that can fundamentally transform the entire asset class, maintains Johnny Brom, chief investment officer and founder, SAIL Investments.

As financial incentives and policies emerge to reduce barriers to industrial decarbonisation through carbon capture or hydrogen, more bespoke finance solutions are being sought.

What measures do direct lenders need to take to make a real difference to their portfolio companies? Jonathan Smith from LGT Capital Partners, head of the firm’s ESG and impact investing efforts in its private debt unit, outlines the priorities.

In Europe, ESG remains a key consideration for investors, while elsewhere the conversation has become more muted. Peter Arnold, head of European private markets at LBP Asset Management, examines the landscape.

Bluefield Partners’ investment manager Manuel Ortiz-Olave on the unique challenges renewables present and how asset owners can best prepare to engage with new lender prospects.

The growing market for energy and power solutions is creating opportunities for lenders that can bridge the funding gap, says Don Dimitrievich, senior managing director and portfolio manager in the Energy Infrastructure Credit group at Nuveen.

The growth in data centre investment brings concerns about energy consumption in the sector – how are borrowers and lenders addressing this?