Benefits of Private Debt
Attractive Returns
In the current market situation, the combination of high illiquidity premiums and complexity premiums makes private debt investments attractive for yield-driven investors.
Portfolio Optimisation
Private debt opens up new pathways to diversification for institutional investors because the segment barely correlates with conventional investment classes. Investing in this asset class may not only raise the portfolio return potential but can also balance fluctuations and act as a pinpoint reduction of risk in general.
Stable Cash Flows
A principal advantage of private debt funds is their stable cash flow which are more predictable and more stable than comparable equity investments due to the seniority of debt over equity.
Lending Mark-up as a Safety Buffer
The lending mark-up of each financing arrangement acts as an additional safety buffer, reducing the risk of a given investment. Moreover, in order to achieve the projected returns, private debt investments do not require rising asset prices the way real estate equity funds do, for example.
Regulatory Benefits
Compare to equity funds, debt funds are subject to lower equity requirements under Solvency II and CRR III. Due to tightening regulatory requirements, bank landing is becoming increasingly restrictive. Private debt can narrow this gap. The funding gap anticipated for the years ahead offers significant opportunities for investors.
Private Debt with BF.capital
Our bespoke private debt solutions combine over 25 years of experience and an extensive market presence with a powerful global network.
Whether it be in corporate, infrastructure or real estate debt – we offer you access to exclusive deals and complex funding structures that are customised to meet your exact needs.
With our one-stop-shop approach, we will guide you personally through the entire process, from the fund structuring to the target-oriented reporting while upholding the highest quality standards throughout.
Put your faith in our know-how and take advantage of a continuous deal flow and best-in-class service that is tailored to your requirements.
Our Investment Solutions
Direct Lending
BF.capital sets up direct lending funds in the real estate debt segment in order to finance refurbishments and property developments in Germany, Austria and Swizzerland. Our focus is on the ESG transformation of the existing building stock in order to promote sustainable solutions for the real estate industry. Capitalising on our expertise, we create the preconditions for sustainable investments that make sense both ecologically and economically.
Private Debt Fund Investments
We offer comprehensive care and advisory for private debt fund investments that are tailored to our clients’ needs and objectives. As partner of the W&W Group, we have assumed strategic responsibility for their private debt program.
In addition to providing strategic investment management, we develop autonomous and bespoke investment concepts such as private debt umbrella funds that give our clients diversified access to international financing markets.
Bespoke Investment Solutions
Our service spectrum is complemented by customised investment solutions and co-investment options. These permit an even greater degree of diversification and flexibility to achieve the specific objectives of our clients in optimal ways.
Through our separately managed accounts (SMA), we structure individual private debt solutions that are optimally adapted to the specific requirements of our clients and that offer a maximum in flexibility. In addition, we support institutional investors in their efforts to develop and implement tailored fund strategies and fund structures.