With the private debt marketplace described as a minefield to navigate, research house Zenith Investment Partners has shared tips to help advisers select the right fund.
Private debt is among the growing asset class of alternatives as investors seek alternative sources of income. Types of products can include corporate lending-bilateral, corporate lending-syndicated, PE sponsor-backed lending or real estate.
Advisers like the products as they generate attractive risk-adjusted returns, structural protection, and minimal mark-to-market volatility, Zenith said, but problems arise around its default risk and illiquidity.
Key considerations as to whether it will be suitable for a clients portfolio include their asset allocation alignment, wh…
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