Private debt refers to loans that are typically made by non-bank investors. Companies typically access private debt to finance growth, expand their working capital, or fund real estate development. Institutional investors have increasingly turned to private debt as a source of diversified returns. With government bond yields at historically low levels, direct lending to companies can offer a significant yield differential compared to the cash flows available on liquid fixed-income securities.
Might generate better yields via higher spreads than liquid credit markets
Could deliver better risk-adjusted returns, as higher yields don`t have to come with greater risk
Help diversify a portfolio with loans that have a low correlation to listed stocks and bonds
We believe that successful investing in this asset class rests on three key pillars:
Diversification across private debt
Flexibility to manage through the cycle
The addition of credit alpha
We have 26 years’ experience and USD 12.1 billion in private debt assets under advisement.1 Talk to us to see how we could help you.
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About Mercer’s assets under management and advisement figures
The assets under advisement data (AUA Data) reported here include aggregated assets under advisement for Mercer Investments L LC and their affiliated companies globally (Mercer). The AUA Data have been derived from a variety of sources, including, but not limited to, third-party custodians or investment managers, regulatory filings, and client self-reported data. Mercer has not independently verified the AUA Data. Where available, the AUA Data are provided as of the date indicated (the Reporting Date). To the extent information was not available as of the Reporting Date; information from a date closest in time to the Reporting Date, which may be of a date more or less recent in time than the Reporting Date, was included in the AUA Data. The AUA Data include assets of clients that have engaged Mercer to provide ongoing advice, clients that have engaged Mercer to provide project-based services at any time within the 12-month period ending on the Reporting Date, as well as assets of clients that subscribe to Mercer’s Manager Research database delivered through the MercerInsight® platform as of the Reporting Date.