As opportunities in the private credit industry have emerged, firms have demonstrated a keen interest in taking advantage of those opportunities. In particular, there have been some innovations that allow funds to seek out loans beyond traditional lending, such as lending against collateral or investing in esoteric assets like art or any other valuable asset. Many funds may not be labeled as “private credit” because they may be a hybrid model, such as private equity or hedge funds that may include private credit in their portfolios, as it’s less volatile than other investments.
It can be difficult for managers to differentiate themselves in the crowded private credit market. The best way to navigate the complexities of the market is to choose advanced technology and data infrastructure to support the entire enterprise from front to middle to back office, as well as a provider that offers extensive reporting capabilities and industry expertise.
For those wanting to maximize the opportunities within private credit, you need both access to data and the ability to analyze it. Fund structures can be very complex, and a typical private equity accounting platform lacks the necessary capabilities for private credit. Many funds choose to partner with a fund administrator that can provide robust technology infrastructure and integrated solutions. SS&C specializes in servicing different types of fund structures, including hybrid funds. Our solutions connect multiple platforms, allowing our clients to collect, analyze and distribute data efficiently.
In partnership with the Alternative Investment Management Association, we invite you to share your opinions. Responses will be published this fall in AIMA’s annual report.