GLOBAL INVESTMENT INSIGHTS

Jon is the Managing Director, Portfolio Strategy & Analytics at Northleaf Capital Partners responsible for the overall portfolio and macro analysis for their private credit and private equity mandates. He also serves on Northleaf’s Private Credit Investment Committee and firm-wide Responsible Investment Committee.

“On a relative basis, private credit returns remain very attractive, although market factors are contributing to a moderate tightening of credit spreads in some parts of the market, while risk premia are holding up elsewhere. We therefore expect to see greater variability in returns as we look across geographies, compare lower to upper middle market and consider asset-based lending opportunities against those in the corporate sector. Allocation decisions made across these dimensions will impact private credit returns over the next several years.”

Jon will be presenting at Global Investment Institute’s upcoming Private Credit Investment Forum, taking place on Thursday, 2 May 2024 at the Grand Hyatt Melbourne, Victoria.

Register your interest in attending here or for more information email zlatan@globalii.com.au.

Danielle is the Head of Sustainability Investment Specialists and APAC Sustainability at abrdn. Her responsibilities encompass managing the Sustainability Investment Specialists team, that is spread across APAC, the UK and the US. She also leads the Sustainability Institute, APAC and is responsible for abrdn’s overall APAC sustainability strategy.

According to Danielle, “the world is not currently on track to cap global warming to well below 2℃. A lack of clear climate policy direction, exacerbated by conflict and energy security concerns, compounded by a backlash against sustainability in some regions, create an uncertain world for companies and investors.

Private sector financial flows cannot fully align with science-based climate objectives unless public policies and regulations are credibly aligned with the said objectives.

The warmer our trajectory the greater the physical impacts from climate change - and we are already seeing this manifest across the globe. Our focus increasingly needs to shift to financing adaptation to that warmer world.”

Danielle presented at Global Investment Institute’s recently held Net Zero Investment Forum, which will be held again next year on Thursday, 13 March 2025 in Melbourne CBD, VIC. To register your interest in attending, click here or for more information email zlatan@globalii.com.au.

April 2024

This month’s featured job vacancies and opportunities include roles at AustralianSuper, J.P. Morgan, HESTA, Bank of America, Australian Retirement Trust, Hostplus, and more.

If you would like us to promote a job vacancy at your organisation for executive and senior investment roles, please contact us.

Marc is a Portfolio Manager at Fidelity International, responsible for the direct lending platform's investment and portfolio management aspects. He and his 11-strong investment and credit management team are spread across the UK and Continental Europe, focusing on a broad pipeline of investment opportunities. At present, their key area of focus is the core middle market, focusing on companies with EBITDA of €30 million or below.

“We believe that this realm of direct lending, the core middle market, is one of the few areas where manager differentiation exists thus allowing us to contribute some level of alpha to our underwriting process tangibly.

The direct lending asset class is increasingly becoming monolithic and commoditised. Sophisticated investors should not just focus on the cash pay rates and portfolio construction but also hone in on the quality of underwriting, consistency, and depth of reporting by the manager. Furthermore, investors must take into consideration the asset manager’s area of focus and whether their strategy adds value to investors’ existing investments in direct lending or other asset classes.”

Marc will be presenting at Global Investment Institute’s upcoming Private Credit Investment Forum, taking place on Thursday, 2 May 2024 as well as the Family Office Private Credit Roundtable, taking place on Friday, 3 May 2024. Both events will be held at the Grand Hyatt Melbourne, Victoria.

Register your interest in attending here or for more information email zlatan@globalii.com.au.

Natalie is a Managing Director and a permanent member of the Investment Committee at Deerpath Capital. Her primary responsibilities include overseeing the underwriting component in Deerpath’s broader investment process.

Natalie asserts that inflationary pressures remain a persistent theme across most parts of the Western world and that central banks’ pursuit of contractionary monetary policy have constrained, but not yet slain the inflationary dragon.

Natalie also questions whether structurally higher interest rates are translating into a material slowdown in underlying economies. Although higher funding costs will ultimately adversely impact corporate profitability and household balance sheets, in the short term, higher reference rates continue to be a relative positive for the direct lending market, as loans issued are almost exclusively floating rate in nature, translating into higher returns to investors, albeit at a lag.

Natalie will be presenting at Global Investment Institute’s upcoming Private Credit Investment Forum, taking place on Thursday, 2 May 2024 at the Grand Hyatt Melbourne, Victoria.

Register your interest in attending here or for more information email zlatan@globalii.com.au.