October 2018 issue

In a time of uncertainty, Jack Gay, TH Real Estate’s global head of debt, explains why commercial real estate debt may provide the relative value and downside protection that investors need

PDI breaks down the key data points for funds raising capital in the broader real estate debt space

Martin Priestley, TH Real Estate’s head of debt for Asia-Pacific, explains why Australia and New Zealand are attractive markets for commercial real estate debt managers seeking relative value in the region

Christian Janssen, head of European debt at TH Real Estate, talks about the opportunities in the UK market and the underlying investment rationale for real estate lending in the rest of Europe

Commercial real estate debt may be hard to pigeonhole, says Jason Hernandez, TH Real Estate’s head of originations for the Americas, but it also offers an attractive alternative

ESG credentials are now an integral part of any effective commercial real estate debt strategy, explains Richard Hamilton-Grey, sustainability manager of TH Real Estate

PDI breaks down the key data points for funds raising capital in the broader real estate debt space

Seunghoon Lee, head of Korean Teachers’ Credit Union’s overseas real estate investment team, joined TH Real Estate’s global head of debt, Jack Gay, to give an Asian investor’s perspective on commercial real estate debt opportunities

Commercial real estate debt is gaining traction among investors as an alternative to more traditional modes of real estate investing, but why? PDI looks at some of the driving factors behind this increasingly relevant asset class.

Over recent months, TH Real Estate has been expanding the capabilities of its debt business through a reoriented focus on high-yield lending strategies

The niche is one of most exciting new areas for private debt investments, but its short track record leaves investors guessing as to how it will fare in the event of a credit crunch.

With so many variables and potential outcomes, planning ahead is a challenge. Looking in its crystal ball, PDI ponders some of the headlines that might be on the horizon.

Philip Robson and Theresa Shutt, president and chief investment officer, respectively, of IAM Private Debt, discuss competition in Canada and the macro risks facing the North America market.

Fund managers are not taking advantage of modern intelligence tools that would allow them to do more thorough underwriting, says Matthias Kirchgaessner, an external adviser at Plexus Investments.

From an increasingly sophisticated investor base to the turning cycle, PDI’s panel of industry experts share their insights on the future of private debt.

Market consolidations, technological innovation and evolving strategies are changing the way fund administrators work, explains Stephen McKenna, co-head of private debt and capital markets in EMEA, SANNE.

While little has changed in terms of strategy distribution, there are fewer managers seeking capital compared to this time last year, PDI data show.

The market remains strong, but the peak has passed. So what happens next? PDI looks at some of the key themes for the future of the asset class.

Short-term volatility should not be a barrier to long-term thinking. James Keenan, chief investment officer and global co-head of credit at BlackRock Alternative Investors, discusses effective strategies both late in cycle and beyond.

As more of the world’s pension wealth heads towards defined contribution schemes, private markets managers will need to come up with solutions. John Bakie reports

While signs of stress in the US credit cycle are yet to migrate to Europe, there are fears that political developments may destabilise the region.

The US offers stable loan underwriting standards and an opportunity for debt funds to take back market share from banks, which have lent more in recent quarters. By Andrew Hedlund

The vast majority of Europe’s syndicated loan deals are seeing investors forcing documentary and pricing changes, with a marked increase over last year.

IPEV guidelines were brought in with private equity in mind and have an increasingly questionable application to private debt. Laurent Capolaghi of EY says changes may be made

The same forces that gave rise to direct lending also caused marketplace lending to grow. Now the latter is experiencing compressed returns. Andrew Hedlund reports

Investors are poised to take a bigger slice of a market traditionally associated with banks. Jerome Henrion, co-head of specialty finance at M&G Investments, explains why

The continent remains awash with non-performing loans but understanding the dynamics of key regions is essential to making a successful investment. John Bakie reports

Asset-based lending may be in vogue, but it requires a different skill set than other private credit strategies, according to Andre Hakkak, chief executive of White Oak Global Advisors

The Singaporean commodity trader’s troubles have put a spotlight on trade finance and its possible applications. Adalla Kim investigates

Investors keen on infrastructure have their eyes on future projects as well as assets that appear to stretch definitions. Andy Thomson reports