Private Credit Funds, The Next Investment Opportunity - Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors - European Pensions & Investments Summit
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Private Credit Funds, The Next Investment Opportunity - Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors - European Pensions & Investments Summit

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Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors, an asset manager attending the marcus evans European Pensions & Investments Summit 2013 talks about why investors should look ...

Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors, an asset manager attending the marcus evans European Pensions & Investments Summit 2013 talks about why investors should look into Private Credit.

The 14th European Pensions & Investments Summit delivered more than 25 hours of world class briefings from some of the leading minds in the pensions industry including: AP Fonden 7, THEAM, Deutsche Bank, Institute for Liberty and Democracy, The People's Pension, China Reform Foundation and many more.

Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today.

For more information contact: emailus@marcusevans.com

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    Private Credit Funds, The Next Investment Opportunity - Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors - European Pensions & Investments Summit Private Credit Funds, The Next Investment Opportunity - Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors - European Pensions & Investments Summit Document Transcript

    • Private Credit Funds: The Next Investment OpportunityInterview with: Ingrid Neitsch, remained consistent at L+500-800. Going forward, distressed corporateHead of Credit Strategies, Ignis Longer-term alternative capital can take paper is expected to become moreAdvisors advantage of the imbalance in risk plentiful not only in Europe and the US premiums. but al so i n Em erging Markets . Responses to secular and cyclicalIn today’s quantitative easing environ- What are Private Credit fee changes will differ between regions, andment, European pension fund structures like? the palette of longer-term investmentmanagers face return goals that are possibilities in Emerging Markets ismoving further and further out of reach, Fees structures are similar to those expected to widen. Private Credit Fundsaccording to Ingrid Neitsch, Head of used in Private Equity, with a preferred have an advantage in being able to bothCredit Strategies, Ignis Advisors. One return paid to investors. There is, deploy capital quickly and maintainof the few investment areas where however, one significant differentiator. positioning until returns are maximised.returns can still meet or exceed plan Most Private Credit managers chargetargets is that of Private Credit, she fees on drawn rather than committed What returns can be expected?went on to say. capital. This difference has developed as credit investing is by nature more Managers in the Private Credit spaceNeitsch will discuss in depth the limited on the upside than is equity target mid-teen returns, often with littleinvestment opportunities in the Private investing, resulting in a less pronounced or no leverage usage. A portfolioCredit space at the marcus evans “J-curve”. diversified by strategy and geographicEuropean Pensions & Investments region can be constructed to moderateSummit 2013, in Montreux, At the same time, Private Credit is also risk and balance the timing of capitalSwitzerland, 22 - 24 April. more likely to produce dividends earlier return within target ranges. Private and with more consistency due to the Credit provides a unique opportunity forWhy invest in Private Credit? cash flow characteristics of debt. pension fund managers to meet target returns by taking advantage of theBenchmarks appear unrealistic in What strategies are possible within longer-term nature of their liabilities.today’s world, yet regulatory and this space?political constraints decrease optionsavailable. Many schemes are in shortfall Private Credit investors have a wideand historically low interest rates make range of options in areas as diverse ascatching up increasingly difficult. Structured Credit, Direct Lending, Secondary Corporates, Distressed Debt PrivateOne of the few investment areas where and Emerging Market Credit.returns can still meet or exceed plantargets is Private Credit, a growing area Structured credit trades typically involveof opportunity attracting a mix of both mispriced older vintage securities wherePrivate Equity and hedge fundmanagers. Private Credit funds focus onstrategies requiring a longer investment price recoveries are event-driven and may still take time. Alternatively, attractive returns can be found in new Credit ishorizon to plaay out, and like PrivateEquity funds, use committed capital toprovide the stability needed to optimally deals involving senior and mezzanine lending to middle market companies, as well as rescue finance. a growing area oftime opportunities. In traded corporate securities,The timing of growth in Private Credit opportunities are centred on stressed opportunityfunds coincides with the new market secondary issues, especially in certainenvironment post-2008. Since the crisis, European regions, as well as in residualthe illiquidity premium in credit has litigation and liquidation claims. Bankwidened, as many investors have balance sheet trades are becomingfocused on maintaining liquidity in order increasingly common, as Europeanto be able to react to unwanted banks in particular look to offload risk tovolatility. Since early 2009 spreads in meet regulatory requirements. Banksthe liquid high yield market have are providing an increasing supply ofdropped from +1500bps to around discounted corporate paper and+500bps, while less liquid direct lending consumer non-performing loans, as wellto larger middle-market corporates has as structured exposure to loan pools.
    • About the European Pensions & Investments Summit 2013 The Investment Network – marcus evans Summits group This unique forum will take place at the Fairmont Le Montreux Palace, Montreux, delivers peer-to-peer information Switzerland, 22 - 24 April 2013. Offering much more than any conference, on strategic matters, professional exhibition or trade show, this exclusive meeting will bring together esteemed trends and breakthrough industry thought leaders and solution providers to a highly focused and interactive innovations. networking event. The Summit includes visionary presentations and interactive forums on geopolitical risks in the global economy, finding opportunities for steady returns in recalibrating markets and rethinking pension products to deliver sustainable benefits in a new systemic context. www.epi-summit.com Please note that the Summit is a closed business event and the Contact number of participants strictly Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits limited. Division Tel: + 357 22 849 313 Email: press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.comAbout Ignis AdvisorsIgnis Advisors manages ~ GBP 1.7bn* in assets and is a specialist fund of funds team with capabilities spanning the alternativeinvestments spectrum including hedge, real estate, private equity and credit. Ignis Advisors is a division of Ignis AssetManagement, which provides investment services to both institutional and wholesale investors and has GBP 68.3 billion** in assetsunder management.* Ignis at 31/12/12**Ignis at 31/12/12 (including GBP 9.3 billion of stock-lending collateral)www.ignisasset.comAbout marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings.For more information, please visit: www.marcusevans.comUpcoming EventsAPAC Investments Summit - www.apacinvestmentssummit.comElite Summit - www.elitesummit.comEmerging Markets Investments Summit - www.emisummit.comPrivate Wealth Management Summit (North America) - www.privatewealthsummit.comTo view the web version of this interview, please click here: www.epi-summit.com/IngridNeitsch