Debt funds have been booming since the Global Financial Crisis, and it’s easy to see why. Investing over all asset classes in multiple industries and locations, debt funds provide their investors with flexibility and relative security to their investment. Particularly in the aftermath of COVID-19, a secondary market has emerged, reallocating unfunded commitments into new distressed or non-traditional debt fund strategies.
Whilst diversification into debt strategies are becoming increasingly popular, debt funds still face a number of barriers that add additional complexity. With widely distributed assets in multiple countries, multiple currencies, using multiple reporting standards, local compliance requirements, and regulatory headaches, private debt can be a nightmare for consolidation. Moreover, depending upon your structure, your investments may need local directors to ensure substance; all difficult to organise from afar when entering a new location.
Given the wide scope of industries you cover and the different specific considerations for them, you need a trusted partner who can help you manage your assets most effectively.