Private Debt — The Alternative Asset Opportunity

Post the Global Financial Crisis (2008), regulatory and legislative frameworks like Dodd-Frank and Basel III have been introduced to promote increased transparency, stringency, and oversight of the banking sector. As a consequence, banks and other traditional lenders’ ability and willingness to hold many forms of credit on their Balance Sheets has lessened. In recent years, private lenders have filled the void.

Assets in the private credit industry have surged 12% CAGR over the last five years to ~$1.35tn as multinationals, SMEs, and individuals seek alternatives to traditional bank lenders.

But why private debt?
- Borrowers with exhausted lines of bank credit and restrained collateral can still receive funding.
- Traditional banks’ slow turnaround times can be negated.
- Private lenders’ less bureaucratic and rigid approaches can allow for increasingly favourable and flexible terms.
- In light of rising inflation and interest rates, diversification across the capital stack affords private lenders exposure to resilient and higher yields.
- Private financing does not require the same level of regulatory reporting requirements as public financing. Private borrowers’ confidentiality is preserved as there is avoidance of the broad dissemination of proprietary information.

Hillingdale Capital is a specialist in structuring and placing private debt transactions across Sub-Saharan Africa and Western Europe. Our extensive network of local and international institutional investors allows us to pair the company requiring funding with the most appropriate funder.

If your company requires private debt funding in excess of USD5mm, please contact funding@hillingdalecapital.com for a free assessment.