Yields from private debt are currently at decade highs, potentially making this a very attractive vintage for the asset class, says Adams Street Partners’ Bill Sacher to Private Debt Investor (PDI).
“In our opinion base rates are likely to remain relatively high as compared to the past 10 years, so the yields that can be obtained in private credit are at decade highs. In addition, the risk profile of these investments is generally lower, which is the aspect that we often hear makes the opportunity so compelling, given some of the looming uncertainties in the market. That combination – high yields that compare favourably with most credit investment alternatives, and the ability to play defence at the same time – is unusual and can make private credit particularly well suited for the times.”
— Bill Sacher, Partner & Head of Private Credit
Learn more about how Adams Street views opportunities in private credit in the full article titled “The Compelling Opportunity in Mid-Market Credit,” in the June issue.
Read the Full Article
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.
