Alternative Investments 2.0

Neue Impulse für Strategien, Assets und Nachhaltigkeit

Ahmet Peker, Rolf Dreiseidler, Johannes Jasper, Ahmet Peker, Rolf Dreiseidler, Johannes Jasper

• Publisher: Frankfurt School Verlag
• Year: 2021
• ISBN:
  9783956471858
• Edition: 1
• Topic: Business
• Subtopic: Financial Accounting
• Index: Business

Alternative Investments sind zu einem bedeutsamen Anlagevehikel für institutionelle Investoren geworden – sowohl aus Gründen der Rendite als auch aus Gründen der Portfolio-Diversifikation. Alternative Investments bieten ferner die Möglichkeit, einerseits für Investoren, innovative Anlagekonzepte zu verfolgen, anderseits für Emittenten, sich alternative Wege und Formen der Kapitalbeschaffung zu eröffnen.In dem Buch werden verschiedene alternative Investments dargestellt und beschrieben, sowohl im Hinblick auf ihren Eigenkapital- als auch auf ihren Fremdkapitalcharakter. Zudem werden hybride Ausgestaltungen behandelt und dem Megatrend Nachhaltigkeit gefolgt. Dabei werden verschiedene alternative Assets vorgestellt sowie die dahinterliegenden strategischen Investmentansätze analysiert.Die Autoren des Buches stammen aus nationalen und internationalen Investmenthäusern und verleihen den Beiträgen einen hohen praxisorientierten sowie praxisrelevanten Einblick in die vorgestellten alternativen Investments. Sie richten sich damit an institutionelle Investoren und vermitteln ihnen Anregungen und Impulse bei der Ausrichtung ihrer alternativen Investmentpolitik und -strategie.

Ebene1 level="deckblatt" titel="Fremdkapital"

Fremdkapital

Ebene1 titel="Investing in Private Debt in Line with Today’s Market Conditions" autor="Martin Progin/Ariel Goldblatt/Mark Tsang/Michael Venne/Matthias Erb"

Investing in Private Debt in Line with Today’s Market Conditions

Martin Progin/Ariel Goldblatt/Mark Tsang/Michael Venne/Matthias Erb

1	Introduction
2	Investment Case
2.1	Introduction to Private Debt
2.2	Corporate Direct Lending (Core Strategy)
2.2.1	Overview
2.2.2	Risk-adjusted Returns
2.2.3	Key Advantages for Borrowers
2.2.4	Investment Risks and Considerations
2.2.5	Outlook
2.3	Opportunistic Lending
2.3.1	Overview
2.3.2	Market Growth
2.3.3	Risk-adjusted Returns
2.3.4	Investment Considerations
2.3.5	Outlook
2.4	Co-Investment and Secondaries in the Corporate Private Debt Space
3	Return Drivers of Private Debt Investments
3.1	Base Loan-related Factors
3.2	Direct Lending Specific Factors
3.3	Portfolio Positioning through the Credit Cycle
4	Risk Mitigation and Success Factors When Investing in Private Debt
4.1	Market & Loan Level Data
4.2	Investment Control
4.3	Lender of Record
4.4	Deployment
4.5	Flexibility
4.6	Diversification
4.7	Workout Capabilities
4.8	Economies of Scale
	Bibliography

1 Introduction

Private debt is a fascinating and rapidly evolving asset class. In market penetration and maturity, it is quickly catching up with its older sibling, private equity. It is also following many of the historical trends around fundraising and evolution of co-investments and secondaries in the private equity asset class.

Part of the strong growth of private debt is driven by the inflow of capital from institutional investors identifying higher yields in a low-interest-rate environment, finding a product that mitigates the J-curve for their private equity investments and concluding that debt funds solve a financing gap left by banks. This trend is further driving the migration of capital and talent from public to private markets.

However, we believe the asset class is still in its early days. The near-to mid-term market challenges implied by the COVID-19 outbreak will prove a true stress test for General Partners’ (GP) track records and for the performance of different strategies. Such dislocations, though unlikely to change the fundamentals supporting the long-term growth of private debt, will have a significant impact on the evolution of the asset class, for existing GPs and prevailing strategies.

This contribution aims to provide the reader with some helpful insights about successful private debt investing. The analyses presented hereafter should help investors to construct robust portfolios and navigate through stressed periods comfortably. We make use of a large proprietary database to add colour to some of the concepts presented in this contribution and to demonstrate the value of data in what remains an opaque asset class. Partnering with GPs and other market participants proves to be a valuable strategy for private debt investors. Besides being a precious source of information, these relationships can also provide the investors with investment opportunities reserved for a limited number of participants.

2 Investment Case

2.1 Introduction to Private Debt

Until recently, banks were the primary provider of debt capital to corporations. Using an “originate to distribute” model, a single bank underwrites an entire loan facility and finds other lenders (a syndicate) to share the risk. Since the Global Financial Crisis (GFC), the number of commercial banks in the United States has fallen by more than a third, from 7,200 to less than 4,450.[1] Congress passed majo...