The World Outside Apollo
Multi-billion dollar funds are now launched in such frequency that they might almost be considered mundane. In fact, more than 50 ‘B Funds’ were launched between January and June of 2020. Typically featuring a minimum check size of $100M-500M, 3 to 5 year terms and no shortage of well educated, Oxford suit wearing partners ready to play “let’s make a deal."
Looking for Yield in all the Wrong Places
Over the last several years, we have recognized what has been going on with negative or near negative interest rates in Japan, and is now bleeding into parts of Europe. We never imagined that those troubles from afar would be any more than banter amongst economists and financial doomsdayers. The reality of those environments have now made it to the shores of the good ol’ USA.
The Need for Private Credit
Private credit relies less on broad market trends and more on the strength of each specific investment. For individuals facing retirement, institutions looking to satisfy long-term pension liabilities or even private investors looking for alternative investments, it offers high current income, low correlations with public markets and lower default risks than yield spreads would imply.