Private Debt
Private Debt
Private debt has evolved from a niche allocation into a core component of institutional portfolios. The asset class offers attractive income potential, low realised credit losses and lower sensitivity to interest-rate movements than many traditional fixed income investments. Diversified private debt portfolios can benefit from multiple sources of return and risk, while maintaining a balanced and predictable cash-flow profile.
Mandatum's Private Debt Programme
Mandatum's Private Debt Programme provides investors with diversified access to global private debt markets through carefully selected private debt managers and strategies. The programme invests primarily in unlisted corporate debt, encompassing both secured and unsecured lending opportunities across Europe and North America, with broad geographical diversification and a focus on markets with strong creditor protections.
The closed-end structure of private debt funds can provide additional protection across market cycles by aligning investment horizons with the underlying assets and allowing managers greater flexibility in the taiming of capital deployment. Combined with natural loan repayments and broad diversification, this can help to create a resilient portfolio with attractive risk-adjusted return potential.
Attractive portfolio finance opportunities for liquidity providers – driven by bank disruption and frozen M&A market
At a time when the broader economy is facing significant turmoil, the landscape of private financing is undergoing substantial transformation. One subcategory of private debt, portfolio financing, has gained a lot of traction in recent years.
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Private Debt: An asset class that benefits from volatility
Private debt is a diverse and complex asset class that often benefits from a volatile market, and Mandatum Asset Management believes a systematic allocation to both direct lending and opportunistic strategies is critical to take advantage of these opportunities. Underlying private debt strategies perform differently based on underlying market conditions, as do existing and new investments. Allocating to a diversified Private Debt programme on a rolling basis allows for a constant level of dry powder that can be deployed into attractive opportunities.
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