Author: Danny Popescu | May 25, 2021
Many of our firm’s clients know pension plans, endowments, family offices as well as many high-net-worth investors continue to favour private debt securities over their public counterparts. As a reminder, private debt/credit refers to lending outside of the traditional banking sector. A critical part of financing the global economy is done through public loans while investors (those doing the lending) receive above average yields without the volatility of public markets.
As more wealth is created in the world, the demand for private debt securities continues to increase, meanwhile the availability for such investments continues to decrease. Here are some recent headlines speaking to demand:
Businesswire – BlackRock launches private debt income fund for UK pension schemes
Financial Times – Ares raises 11 billion Euro private debt fund amid alternative lending rush
Bloomberg – Calypso LBO Loan Is Latest Giant Deal in Private Debt Market
As is usually the case, these investments aren’t easily accessible by retail clients. The demand for private debt securities in Canada outsizes supply and unfortunately, the ~ $500 million Private Debt Pool currently available to Harbourfront’s Canadian clients may also soon close to new investors.
Have a great week!
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