Private Credit as an Asset Class
Is Private Credit a good asset class for your investment portfolio?
Luke Powell has been involved in the asset based lending, direct lending and private credit space since 2006.
What is Private Credit:
Elan Alternative Group defines private credit as an asset class comprised of higher yielding, illiquid investment opportunities that cover a range of risk & return profiles. This typically includes debt facilities that are secured by assets and in addition are senior in the capital structure. Luke Powell has structured these facilities which have fixed income like protection characteristics yet have equity like risk and returns. Typically, these Private Credit opportunities can be accessed through several different vehicles of which Luke Powell has performed due diligence on. They include closed end comingled funds such as GP/LP structures, private and public business development companies and on occasion attractive collateralized loan obligations (CLO).
Who needs private credit and why does it exist:
When private companies need to raise capital to expand their business operations, they often do not have access to traditional funding. Therefore, private companies borrow money from private lenders. The private lender will typically create a loan structure with multiple covenants to protect the lender. Luke Powell at Elan Alternative Group has been involved in many of these private credit transaction negotiations.
Reasons to consider evaluating Private Credit with Luke Powell:
High yield income
Typically, a fixed interest rate tied to the risk of the company
Senior secured loan portfolios which are collateralized with assets
Experience of Luke Powell’s diligence on private credit opportunities since 2006
Luke Powell has evaluated these opportunities which in total have equated to over $5.0 billion of investment loans
If you have an interest to lean more, please contact Luke Powell at Elan Alternative Group.