The fast growth and future potential of private markets have prompted specialist private assets firm Schroders Capital to launch a new unit.
With an initial $30 billion AUM and 100 investment professionals, the Private Debt and Credit Alternatives unit will bring together the firm’s real asset debt, structured and corporate credit, specialty finance and impact lending focuses.
Bringing several strategies together on one platform will enable better opportunities for clients to access the firm’s wide range of solutions, enable effective communication of the firm’s macroeconomic views, and provide stronger distribution and risk management.
Leading the new business unit are U.S.-based Michelle Russell-Dowe, global head of securitised product and asset-based finance, and Stephan Ruoff, global head of insurance-linked securities.
“Investors are having to navigate an ever-evolving, often volatile market environment and they need dynamic and flexible solutions to navigate market conditions that are unfamiliar to many. We are witnessing structural changes that have resulted in higher interest rates,” Russell-Dowe said.
“Given the global regime change, which we describe as the ‘3D Reset’ spanning deglobalization, decarbonization and demographics, resulting in a historical income opportunity, this is the right time to accelerate our growing debt and credit business,” Ruoff added.
The co-heads of the PDCA business will retain their existing responsibilities and report to Georg Wunderlin, global head of private assets, who says that the new unit builds on Schroders Capital's reputation as a global and trusted private markets solutions provider.
“We only see the momentum behind its growth continuing, with a clear appetite from investors to capture the diversification and returns that private assets can offer,” he said. “Global macroeconomics combined with the credit cycle are providing strong tailwinds particularly for debt and credit strategies. The private debt total market is estimated at approx. $23 trillion, but only approx. 6% is currently served by private credit managers, leaving plenty of room for growth.”
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