top of page

Important Disclaimers
This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

Where to Turn for Yield? A Look at Private Debt

Where to Turn for Yield? A Look at Private Debt


Private Debt: Strategies with flexible structures that offer the potential for both diversification and an attractive risk-return profile.


Investors are increasingly drawn to private debt strategies to seek yields, preserve capital, and maximize returns against a backdrop of high market valuations and compressed bond yields. This shift is driven by the unattractive risk-return profile of public market fixed-income, pushing institutional and high-net-worth investors towards private credit for its potential to offer better diversification and strong risk-adjusted returns.


Private debt has seen substantial growth. The asset class's appeal is bolstered by features such as short durations, collateralization, and credit insurance, which mitigate investment risks. As regulatory pressures have led banks to retreat from these markets, non-bank financial institutions and investors have found rich opportunities, making private debt a compelling inclusion in diversified investment portfolios.


Offering a variety of strategies from conservative to aggressive, private debt allows investors to tailor their financial exposure according to their risk tolerance and economic outlook. Strategies range from distressed and subordinated debt to niche areas like aviation and real estate finance, each providing different risk-return profiles. In a persistently low-interest-rate environment, private debt stands out as a viable option for investors aiming to enhance yields and diversify away from traditional equity and fixed income investments.


Access the entire article to explore more profound insights into the burgeoning opportunities within private debt strategies. Uncover how these alternatives can enhance your portfolio, offering both diversification and attractive returns. Dive into the various private debt strategies that cater to different risk preferences and investment goals.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Wary of Economic Jitters

    • Capital Preservation Strategies

    • Return-Maximizing Strategies

    • Opportunistic/Niche Strategies

  • Different Investors Looking for Diversification

    • Various Segments of Private Debt Offer a Range of Styles and Risk/Reward Profiles




Thanks to our Contributor


M360 Advisors


M360 Advisors invests in niche segments of private credit and manages a vertically integrated credit strategy that targets short duration commercial mortgage assets secured in first lien position by income-producing properties. The firm’s objective is to preserve invested capital and achieve attractive and sustainable risk-adjusted returns relative to traditional fixed income investments, while also providing reasonable liquidity to investors. M360 Advisors oversees the entire value chain internally – from sourcing loans all the way through to portfolio management.


By focusing exclusively on secured investments that are senior in the capital structure, we are able to deliver to our clients a rare combination of stable, uncorrelated returns with significant collateral protection.

Comentários


Access PrimeAlpha Alternatives Education, Research, and Database of Managers and Investors
bottom of page