This strategy invests in a diverse range of private and illiquid assets with long-term maturities. These assets have the potential to generate stable, long-dated cashflows to match the needs of institutional investors.
We largely originate our long-dated assets ourselves; these are fixed-rate or inflation-linked assets, usually secured investment grade. We integrate strong covenants into each one with the aim of providing further investor protection.
We believe flexibility is important when investing in private and illiquid credit. As a result, we do not make top-down allocations, but build a portfolio asset by asset when we see value that can endure for the long term.
These assets typically offer an ‘illiquidity premium’, or additional return, to compensate for limited secondary trading opportunities and the high level of analysis and work associated with the investment. Subsequently, there is the potential for higher expected returns than those achieved by public corporate bonds of comparable credit quality.
We have a history of more than 20 years investing in private debt, with a strong track record of sourcing attractive assets that offer additional returns and diversification away from traditional corporate credit.
Today we are one of Europe’s largest investors in this market with the ability to tap into a wide range of opportunities.