Private debt, or direct lending, is an investment strategy where non-bank lenders (institutional investors, debt funds, insurance companies and private investors) provide loans (senior, mezzanine and other forms) to support the financing objectives and requirements of businesses, including growth, acquisitions and funding for developments.
Private debt accelerated as a large and growing asset class post the 2008 Global Financial Crisis, which caused a structural shift in the supply and demand dynamics that governed lending markets at the time. The implementation of regulatory reforms increased costs and restricted credit appetites from banks which caused them to focus on core areas of the lending market and to retreat from others, especially in respect of loans to private companies in the small and mid-market segment.
In comparison to traditional fixed income, private debt can provide investors with higher yields, portfolio diversification and lower portfolio volatility.
private debt explained
our private debt funds
Westbrooke Yield Plus Plc is an open-ended Jersey Expert Fund which provides investors with a high-yielding, fixed income alternative investment, through a diversified portfolio of 33 private debt transactions predominantly in the UK.
The Fund delivers an asymmetric risk / return pro”le to investors, by focusing on providing loans to lower and middle-market UK companies and real estate sponsors, a signi”cantly under-served UK market segment. This allows investors to bene”t from a target annual return of cash* plus 5% – 7% per annum in GBP (after fees and costs).
Westbrooke Income Plus is a South African private debt investment strategy which provides investors with an attractive cash yield in excess of that provided by traditional fixed income funds.
The Fund is focused on the generation of a consistent cash yield by investing in a diversified portfolio of secured, senior or subordinated, interest-paying credit investments. The Fund targets an investor return of between Prime + 2.0% – 4.0% p.a. (net of all fees and costs), which is paid to investors on a quarterly basis.
who are westbrooke’s private debt
strategies best suited for?
Investors seeking stable, yielding income flows (in either ZAR or GBP)
Medium term investment horizon, with the ability to redeem capital within 18-24 months
Investors seeking a low-risk alternative to listed bonds or fixed income
Investors seeking to make a positive social impact, by boosting SMEs and creating jobs