Private debt or Direct Lending refers to the debt financing by non-banks, in particular private debt funds, and typically illiquid loan instruments. Corporate private debt comprises a broad spectrum of corporate lending strategies with different risk/return profiles, including first lien senior secured, subordinated and unsecured lending. Infrastructure debt refers to the debt financing of infrastructure projects. Private debt funds offer financing solutions, which in Europe have historically been provided almost exclusively by banks. The European banks, however, have increasingly downsized their lending activity since the 2008 financial crisis and ensuing regulation and regulatory capital requirements. This has dramatically altered the European credit market and landscape. In the U.S. private debt has been an established asset class for decades.
Alpha Associates invests in leading private debt funds and Alpha-arranged single managed accounts with first lien senior secured or subordinated strategies and an attractive yield profile in Europe and the U.S. We have been investing in the private debt asset class since 2007 and work exclusively with established managers with relevant, top tier track records in credit analysis, selection, monitoring and work out, and with structures and terms ensuring alignment of interest with their investors.