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The benefits of private debt in a volatile market

July 2022

The following was published on ifa Investment Showcase on 27 July 2022.

In this episode of ifa’s Investment Showcase we’re joined by Sid Kumar, Head of Acquisition Finance at CIP Asset Management, Challenger Group.

Sid speaks about private debt and how it has fared in what has been a particularly challenging environment, one complicated by a once-in-a-lifetime global pandemic, Russia’s invasion of Ukraine, rising inflation and ballooning interest rates, as well as a myriad of other challenges including the increasing possibility of a global recession.

Sid delves into the local take-up of alternative investments, as well as how private debt portfolios are positioned in the context of what could be a potential recession.

Tune in to find out:

  • Approach to private debt investing in the current macro environment
  • Why private debt has a strong diversification appeal
  • Private debt competing and collaborating with the banks
  • Engaging with private borrowers on ESG

0:00. – Introduction

2:36. – Adapting our approach to current market conditions

7:10. – Positioning of private debt portfolios in what could be an approaching recession

10:19. – Capitalising on the COVID-19 crisis

13:03. – Liquidity in the Australian private debt market

15:48. – Diversification in private debt

17:48. – What are the banks doing

21:20. – Engaging with private borrowers on ESG

This material has been prepared by Challenger Investment Partners Limited (CIP Asset Management, CIPAM) (ABN 29 092 382 842). CIPAM is the holder of an Australian Financial Services Licence AFSL 234678 and is regulated under the laws of Australia.

This material does not relate to any financial product or service and does not constitute or form part of any offer to sell, or any solicitation of any offer to subscribe for interests, in any financial product and the information provided is intended to be general in nature only. No reliance may be placed for any purpose on the material or its accuracy, fairness, correctness or completeness. This should not form the basis of, or be relied upon for the purpose of, any investment decision. This material is not intended for retail investors as defined under local laws.

This material has been prepared without taking into account any person’s objectives, financial situation or needs. Any person receiving the information in this document should consider the appropriateness of the information, in light of their own objectives, financial situation or needs before acting.

Neither CIPAM nor any of its related bodies corporates, associates and employees shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the material or otherwise in connection with the presentation.