Video presentation of our new private debt strategy

For information on our products for investing in unlisted assets such as private debt or private equity, please contact our experts:

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An investment platform 100% dedicated to unlisted assets

Private Corner is an asset management company that received its AMF authorisation in November 2020 and is aimed exclusively at wealth and asset management professionals with the aim of offering them an integrated platform, 100% dedicated to unlisted assets (private equity, co-investment, infrastructure and private debt), so that they are able to offer their private wealth clients, since our unlisted asset funds are accessible from €100,000, a global solution on private equity, private debt and infrastructure.

Find out more about our investment offer in unlisted funds here

New private debt fund named Global Private Debt Strategies

After private equity, infrastructure and co-investment funds, this is the first private debt fund we are offering our distributors. Why private debt? Because the financing needs of companies are growing, as they face the challenges of internationalisation, the implementation of artificial intelligence and all aspects of decarbonisation. So, all these issues require a huge amount of financing in a complicated geopolitical context, with inflation and rising interest rates, a context in which banks are less and less willing to finance all types of financing requests on a very broad basis, with companies that are very, very indebted and, in a way, a debt wall in three years‘ time, since there are 76 billion euros of debt that will have to be financed in three years’ time. At Private Corner, we are convinced that the timing is right to position ourselves in private debt strategies, and more specifically in mezzanine debt strategies.

Why did you choose capital solution strategies and not Direct Lending strategies?

Because, in our opinion, Direct Lending does not offer a sufficiently dynamic level of risk/return for wealthy clients [who are in the process of building up a portfolio of unlisted assets, who naturally need to have a long-term investment horizon. Today, the liquid risk-free rate seems to us to be more attractive than Direrct Lending for wealthy customers.

The advantage of mezzanine debt is that you have private debt coupled with quasi-equity and a cushion of downside protection that allows us to target final performances, net of fees, of around 12 to 13%.

Is now the right time for retail investors to invest in unlisted markets?

The geopolitical context of recent months has seen a slowdown in interest in unlisted investments. However, distributors are not losing interest. Our distribution network has been inundated with information over the last three years, and we are certainly at a turning point in our digestion, taking a step back before making any new decisions that will commit us over a period of 8 to 10 years. This is a long-term strategy. With high risk-free rates, there is an urgent need not to rush and to take the time to make a decision.

Are there any strategies that should be favoured over others in non-listed investments?

In our approach, we try to have a balanced positioning, so we don't go to extremes. In private debt, direct lending is a little less attractive than it may have been at a time when rates were close to zero, in our view. Tactical credit also has a level of risk-return that is a little too random, in our view. So it's not necessarily an approach that we think is favourable for private clients. On the private equity side, we haven't yet positioned ourselves on venture or turnaround in our open architecture approach, for the same reasons. If you want to make this unlisted asset class a fully-fledged approach to diversifying the wealth of private clients, you have to go step by step, making sure that each link in the chain understands the ins and outs of its commitments so that it never becomes an anxiety-provoking asset class. That's why our approach is designed to be as prudent as possible, in relation to the unlisted asset class, which is inherently risky, but in any case as balanced and transparent as possible, so that we can create this growing interest, beyond having, initially, a purely rational diversification approach, but also an interest in the asset class as such.

For more information on the solutions we can offer your clients for investing in private assets, please contact us.

Warning: Private Corner is a company authorised as a portfolio management company on 05/11/2020 by the Autorité des marchés financiers under number GP-20000038 and manages the Global Private Debt Strategies . Investment in the Fund is reserved exclusively for professional or sophisticated investors as defined in the Fund's legal documentation. Past performance is not indicative of future performance and there is no guarantee that objectives will be achieved. The gross IRR/multiple indicated are higher than the net IRR/multiple, as the FIAs are subject to fees and costs detailed in the legal documentation of the funds. All information presented is Private Corner's own opinion and interpretation. The investment criteria and operating rules of the funds presented by Private Corner are available on request in the legal documentation, which takes precedence over the terms of this video.