Listed Debt
In recent years, the private debt asset class has garnered growing attention from investors, driven by significant changes in the credit market landscape.
Within the Eurozone, traditional bank lending has decreased substantially due to the aftermath of the 2007/08 financial crisis. Increased capital requirements under Basel III have further forced banks to reduce their lending volume in certain areas. This gap has been filled by “non-banks,” which have stepped in to take over portions of traditional bank lending and introduced investment vehicles that allow investors to participate in private debt portfolios.
Listed Debt companies are publicly listed on regulated stock exchanges, providing investors with direct access to diversified private debt portfolios, which offer unique characteristics.
Liquidity
Liquid exposure to the private debt asset class without capital lock-ups or fixed investment horizons.
Access
No minimum investment requirements, enabling immediate exposure to diversified private debt portfolios without the typical J-curve effect.
Transparency
High standards of disclosure ensure a clear and transparent view of the private debt investment portfolio.
Diversification
Broad diversification across regions and sectors within the private debt portfolio.
Cost Efficiency
Minimal transaction costs (limited to the bid-ask spread) and generally lower management fees compared to traditional private debt funds.
Performance
Proven long-term outperformance compared to all major asset classes and steady dividend cash flows over time.
Discount Opportunities
Depending on market conditions, shares can often be acquired at a discount to their fundamental value (Net Asset Value).