Out of the grey zone into the comfort zone

Out of the grey zone into the comfort zone

Despite booming private credit activity, a bifurcation of in-vogue strategies until recently created a fundraising graveyard for approaches in the middle of the risk/return spectrum. This gap, often termed the ‘grey zone’ by LPs, is starting to be filled as LP allocations mature and adapt to take advantage of a range of emerging strategies that offer low double-digit IRRs and attractive risk-adjusted returns.

Which private debt strategies are moving “out of the grey zone and into the comfort zone”? And which funds will emerge as the winners in the race for LP capital? In this by-line piece for Private Debt Investor Alistair Baird, Principal at Rede Partners, analyses the impact of evolving LP programs on allocations to private debt.