Insurance Investor spoke with Fred Chung, Partner & Head of Credit Underwriting, to gain his insight into why strong underwriting is a key determinant of success in private credit.
“The goal of underwriting is to ensure that, when you put a loan in your portfolio, you are taking a critical view on the five-year-outlook and validating that the lender can get their money back intact at par, even in the worst-case scenario. The only way to do that with consistency is to ensure that you have an in-depth approach to underwriting and that you clearly understand the businesses in which you are investing.”
— Fred Chung, Partner & Head of Credit Underwriting
Learn more about how Adams Street views opportunities in private credit in the full article titled, “Why Underwriting is Vital to Private Credit Success.”
Important Considerations: The above information is not investment advice or an offer or sale of any security or investment product or investment advice. Statements made are as of the date hereof. References herein to specific sectors or strategies are not to be considered a recommendation or solicitation for any such sector or strategy. While Adams Street believes in the merit of private market investing, such investments are subject to a variety of risk factors and there can be no guarantee against loss. Projections or forward-looking statements are only estimates of future results based upon assumptions made at the time such projections were developed and actual results may be significantly different. Adams Street Partners, LLC is a US investment adviser governed by applicable US laws, which differ from laws in other jurisdictions.