Absolute Return

Bespoke mandates

June 28, 2016

“Private Debt” by Prime Capital means customized investment solutions with low correlation to traditional asset classes. Our solutions result in attractive and stable returns.

Risk and target customers

Investments in the “Private Debt” market are accompanied by numerous risks which, according to the regulating authority, can only be adequately recorded, assessed, and managed by (semi-) professional investors. In particular, this refers to credit and liquidity risks, which may lead to increased losses. For this reason, Prime Capital offers customized investment solutions in the “Private Debt” segment exclusively to professional investors.

Asset selection through experienced managers or leading banks

Private Debt includes senior, mezzanine and other debt financing instruments, which are predominantly offered by institutional investors such as investment companies, pension funds and insurance companies, but not by banks. Private Debt offers attractive investment opportunities for institutional investors who seek to diversify and expand fixed income portfolios while providing lower default and higher recovery rates than traditional bonds. Additionally, the asset class has a collateralization and covenant package, offers different maturities and achieves attractive returns (fixed or floating rate). Private Debt investments can be illiquid and not tradable at all times.

Principally, we divide the private debt market into the following sectors:

  • Transportation (aircrafts, ships, railway/rolling stock)
  • Infrastructure
  • Real Estate
  • Corporate
  • Other secured credit classes (e.g. trade finance)

Institutional investors can invest in private debt via funds, collateralized loan obligations, or direct lending. Each of these variants is characterized by different aspects. It is necessary to use significant internal resources or to outsource important functions to a competent partner, in order to successfully gain access to this asset class (or its sub-segments).

Investment according to your specifications – for a robust portfolio

Prime Capital is specialized on bespoke and customized mandates. This includes the identification and implementation of Private Debt investments according to investors’ specifications in terms of diversification, return, risk tolerance, tax requirements, complexity, investment region and investment horizon.

It is our aim to build up a diversified and robust portfolio – suited to all phases of the capital market cycle. Investment criteria – which can be either more static or flexible to ongoing dynamic processes – are matched in cooperation with our clients and are based on Prime Capital’s asset class expertise. Prime Capital can execute investments via direct asset allocation, a customized and well-wrought bank-sourcing model, as well as its comprehensive offering of thoroughly selected managers.

We are able to meet all individual needs of our different clients. Here, we use our long-standing experience in the fields of sourcing, structuring, executing, and managing loan/private debt transactions, as well as our comprehensive expertise in access channel development and risk management.


Back to press