This strategy combines 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.
The strategy’s unconstrained portfolios invest in assets that are typically floating rate and secured. They can include direct lending, real estate debt, assets that take corporate or consumer risks from banks, as well as leasing finance.
The assets in which we invest are typically sourced and structured privately. As they are not rated by agencies, the team negotiates these assets to ensure strong protections, such as seniority, security and covenants.
The assets pay investors a premium to compensate for factors including limited secondary trading opportunity, asset complexity and execution risk associated with investment.
The low-yield environment has led many investors to look beyond traditional fixed income markets for investments that offer their required returns. Our approach favours flexibility when investing in private and illiquid debt. We do not make top-down allocations but build portfolios asset-by-asset where we see value.