Searching for GrowthHow are credit fund managers navigating today’s debt landscape? In the first quarter of 2018, Ropes & Gray and Debtwire conducted a survey of 100 senior professionals within US- and UK-based credit funds to find out. The results show that fund manager views on leverage are undergoing transition, and fund structures are being influenced by a desire for liquidity and the maturity of investment assets as managers and investors seek higher after-tax returns. Through it all, credit fund managers are working to mitigate risks as they expand into different credit strategies and operate investment platforms with multiple funds and accounts investing alongside each other.
Credit Fund Platforms
Key FindingsOur research identifies several trends:
- 65% intend to launch a distressed/stressed debt strategy in the next 12 months, with 56% saying the same about senior opportunities
- 60% of respondents use leverage for longer term investment purposes, while 37% do so for only for bridging liquidity
- 42% use season and sell structures, with 52% of those managers using a 60-day period
- 63% of respondents oversee between one to five separately managed accounts, while 37% run over five
Contact UsRopes & Gray offers cutting-edge advice encompassing all aspects of the formation and operation of credit funds, including stressed/distressed, special situations, structured finance, real estate debt and direct lending funds. Our experience across the funds spectrum and in a wide variety of lending and financing transactions allows us to craft tailored solutions for credit fund managers across all parts of their business lifecycle.
Email CreditFunds@ropesgray.com to initiate a dialogue about your needs.