Insights

Our 2023/24 sustainable investing report has been published and looks at the consideration of ESG factors in the investment process, the levers in private credit to incentivise progress and how best practice in sustainable investing is a risk mitigant, providing better downside protection for investors. The take-up of best practice sustainable investing within private credit […]

Executive Summary Yields and relative value in private credit remain high. Pemberton’s mid-year review looks at the trends of the first 6 months of the year and finds an overall improved picture with strong momentum for private credit: Opportunities up, margins tightening, but yields and relative value remain high. The trends observed in Q4 2023 have […]

We are pleased to share this inaugural Task Force on Climate-Related Financial Disclosures (“TCFD”) report.

The rise of NAV financing for private equity buyout funds is drawing the attention of insurance company chief investment officers due to the attractive risk/return characteristics and strong structural credit protection features in a nascent and fast-growing asset class.

The growth and return opportunities for direct lending in Europe’s mid-market are highly attractive.With banks continuing to reduce lending volumes and increased market volatility reducing thepredictability of public financing markets, private credit has emerged as a robust solution for borrowersand LPs alike.However, direct lending portfolios have been tested by slower economic growth, the impact of […]

LPs are benefiting from higher asset level returns. This is a function of market dislocation over the last 24 months, a more pronounced absence of banks from the market and the rate hike cycle implemented by the European Central Bank, the Bank of England and the US Federal Reserve. This is benefiting our current fund […]

The bank balance sheet securitisation market has enjoyed significant growth over the past five years and looks set to continue apace on the back of clearer regulation

Institutional investors operate in a constantly changing economic and regulatory environment.

NAV Financing: A Hypothetical Performance Analysis The emergence of NAV Financing as an alternative private credit instrument in recent years has been accompanied by an increased investor focus on the potential role this new class of instruments can play within a broader private credit portfolio context. There are several reasons why NAV Financing is an […]

Net Asset Value (NAV) Financing refers to a form of lending that takes the NAV of the assets of a fund as collateral (in other words, lending which is secured against the underlying assets in the fund’s portfolio). Although some LPs might believe that NAV Financing is a new asset class which has only emerged […]

Executive Summary Private debt has emerged as an asset class that can provide resilient, high-yielding income, which is a diversifier from equity dividends and fixed income coupons. This is particularly attractive when higher-than-expected inflation figures have fed through to LGPS pensions over the last few years. This inflation is now baked into future pensions and […]

Executive Summary Yields up, leverage down and volumes of investment opportunities increasing. As expected, M&A activity picked up in Q4 2023 after a relatively subdued market earlier in the year. In 2024, we expect the volume of activity to be higher than in 2023, while remaining below the pre-rate hike peaks of 2019 and 2021. […]