Evergreen

The growth of continuation vehicles, evergreen funds and securitisation are contributing to the changing face of the fund finance market.

A run on redemptions in the private credit world has highlighted the importance of diligencing gating mechanisms in fund finance facilities.

Continuation vehicles are emerging as a key liquidity tool in private credit, yet the majority of LPs are still opting to cash out amid rising market scrutiny.

Asia-Pacific direct lending still demands borrower education but exciting new markets are opening up, says Andrew Schantz, a partner in credit and special situations, Hong Kong, at Bain Capital.

Asia-Pacific is a structurally promising market where the role of fund administrator is central to scaling private credit, says Christophe Picardel, head of private capital, Asia-Pacific, Securities Services at BNP Paribas.

Market conditions are creating fear and loathing for some, but opportunity for others.

Matthias Kirchgaessner examines retail redemption stress, institutional contagion channels and the broader repercussions for the private credit market.

By now there is widespread acknowledgement that something is awry in private credit, both with redemptions in semi-liquid funds and valuations.

While there appears to be investor support for greater convergence of public and private debt, fund structuring issues need to be resolved.

Apollo and Ares’ funds join a growing list of funds enforcing redemption limits, seeking to avoid downgrades.