Private debt

 

We have been navigating private debt markets for clients for over 20 years and are recognised as the second-largest private credit investor in Europe and sixth largest in the world*.

Superior access to assets

The depth and breadth of our market knowledge and sector specialisms enables us to invest across the full spectrum of private debt, to build portfolios that can help clients meet their long-term investment objectives and evolving needs. We have a history of innovation, using our strength in origination of unusual or complex assets, to find value in less competed areas of private markets.

As long-term partners to our clients, we offer strong alignment of interests and a focus on the outcomes offered by private debt assets, rather than a label or definition. We combine a bottom up, active approach to investing based on fundamentals to identify value. Our scale, extensive credit research platform and expertise, together with a consistent market presence over the long term, creates superior access to assets, enabling us to take advantage of new opportunities as they emerge. 

ESG factors are integrated throughout our investment processes and embedded in our fundamental analysis. As a private lender, closer interaction with our borrowers allows us to engage with them to address material ESG issues and influence positive change. We offer strategies across a broad range of private and illiquid assets from bank loans to real estate debt finance, direct lending, and distressed debt.

*Based on figures quoted in Private Debt Investor as at 1 December 2019 based on inflows over the past five years.

Related strategies

Leveraged finance

We invest predominantly in senior secured loans issued by European and Global sub-investment-grade companies from a variety of sectors albeit with a bias towards defensive industries. 

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Asset backed securities (ABS)

Also known as securitised debt, these public bonds are backed by a specified pool of underlying loans; typically, residential, or commercial mortgages, or personal loans issued by UK and European banks.

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Illiquid multi-asset credit

The current low-yield environment is leading investors to look beyond traditional fixed income markets for investments that offer their required returns. We combine a diverse range of private and illiquid debt assets, carefully selected to target steady, reliable income and return premia typically in excess of comparably rated public securities.

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Inflation linked multi-asset credit

We invest in a range of sterling-denominated public and private securities that offer returns contractually linked to the UK retail price index (RPI) inflation rate. This actively managed approach aims to protect the value of capital and income from inflation by delivering real, total cashflows over the long term.

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Long-dated illiquid multi-asset credit

We invest in a diverse range of private and illiquid assets with long-term maturities that have the potential to generate stable, long-dated cashflows to match the needs of institutional investors.

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Senior real estate debt

We invest in commercial mortgages secured against global real estate assets, with interest typically paid by rental income from the underlying properties. Senior debt, of investment grade quality, often has a first-ranking charge over the asset, ensuring that in any potential default scenario lenders have recourse to the underlying properties.

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Junior real estate debt

We invest in commercial mortgages secured against global real estate assets, with interest typically paid by rental income from the underlying properties.

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Consumer finance

This emergent sector of private credit involves selectively acquiring highly diversified loan portfolios, which can include residential mortgages, credit cards, auto loans, student loans and unsecured consumer loans, and either holding the whole portfolio or retaining a residual equity tranche, which can offer a high rate of return.

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Private placements

These unlisted corporate securities are offered directly to a limited group of institutional investors rather than via public markets. Typical issuers are larger companies with strong financial profiles that can provide stable, contracted cashflows, with substantial protections for investors.

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Debt opportunities

This capability invests in distressed debt and special situation opportunities and uses the specialist legal and accounting skills within the investment team to realise full value from those investments.

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Infrastructure finance

This private debt asset class finances the development and maintenance of essential services and structures and services in the public or and private sector.

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Impact financing

This approach to impact investing targets investment in projects and companies that make a positive contribution across a range of environmental and social issues – so their capital can contribute to creating sustainable, resilient and inclusive economies and societies.

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European secured property income

This long-term investment approach, which blends traditional fixed income and real estate investment, involves acquiring a property with a long-dated lease of 15 years or more linked to local or core European inflation measures.

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UK secured property income

This long-term investment approach, which blends traditional fixed income and real estate investment, involves acquiring a property with a long-dated lease of 20 years or typically more, usually linked to UK inflation.

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UK secured lease income

A long-term investment strategy that aims to deliver regular inflation-linked income from investment grade rental cashflows in the UK.

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