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Few in the private debt industry wanted to see Britain vote to leave the European Union. But, amid the confusion and uncertainty, there are still reasons for optimism.
Olivier Berment, head of Ardian Private Debt based in London, discusses the challenges Brexit poses and the trend of increasing unitranche loan packages in the European market.
The KKR-backed vehicle, which manages NPL portfolios of banks in Greece and Italy, continues its expansion with the appointment of Paul Bramley.
The debt fund invests in growing mid-market companies and is expected to reach a final close by October. It has a target IRR of between 6% and 7%.
Senior debt strategies are largely protected from low GDP growth and shifts in inflation, unlike investments in equity and bonds, a report has claimed.
The fund attracted commitments from Chinese insurance companies Huatai Insurance and China Life.
The African private debt market is often overlooked by institutional investors and debt funds, but the success of some operators prove that the opportunities are there.
Ken Goldsbrough, who leads the debt advisory team, has said it will be “Remainers who will be key to the success of Brexit” as the firm expands its debt service.
The €10m investment will go into the Southbridge Mezzanine European Fund which invests in both equity and mezzanine debt.
Private debt is looked on increasingly favourably by institutional investors, a study has revealed, as almost half of the participants state they will increase their allocation to the asset class.