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Ninety One - Thu, 10/26/2023 - 22:43

The missing piece in private credit allocations

Chris Rust and Lei Lei explain the benefits a sponsorless lending strategy can bring to private credit allocations and examine common misconceptions around the associated risks.

Investors have embraced sponsored direct lending in their private credit allocations for some time, but many are yet to explore the sponsorless* private credit market. This is partly owing to common misconceptions around the associated risks. However, well-structured loans to sponsorless borrowers can offer attractive risk-adjusted returns, robust downside protection and valuable diversification – especially if the loans are asset-backed and originated by a manager with the relevant experience, skill set and market access.

This piece discusses:

  • The sponsorless lending opportunity set in the European mid-market
  • Common misconceptions around the risks associated with sponsorless lending
  • How exposure to a well-designed strategy can offer valuable benefits to investors

*‘Sponsorless’ refers to borrowers owned by entrepreneurs, families and shareholders other than private equity funds.


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Ninety One

Ninety One is an active, global investment manager managing over $158 billion in assets (As of 12.31.2023). Our goal is to provide long-term investment returns for our clients while making a positive difference to people and the planet. Established in South Africa in 1991, as Investec Asset Management, the firm began as a small start-up offering domestic investments in an emerging market. In 2020, as a global firm proud of our emerging market roots, we demerged to become Ninety One. We are committed to developing specialist investment teams organically. Our heritage and approach let us bring a different perspective to active and sustainable investing across equities, fixed income, multi-asset and alternatives to our clients - institutions, advisors and individual investors around the world.

Cynthia Holahan
Head of Marketing, North America
Cynthia.Holahan@ninetyone.com
917-206- 5171

ninetyone.com/en/united-states
65 E 55 Street, FL 30
New York, NY 10022

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