Greater than half of Ardian’s personal credit score investments got here from repeat buyers final 12 months, the asset supervisor has confirmed.
In its 2023 built-in report, Ardian reported that its personal credit score enterprise boasted $8bn (£6.05bn) of belongings managed or suggested final 12 months, and organized $3.7bn throughout the earlier 18-24 months.
Mark Brenke, head of personal credit score, and Guillaume Chinardet, deputy head of personal credit score and senior managing director, described final 12 months’s efficiency as “resilient”, with “strong” demand throughout Europe.
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Brenke and Chinardet mentioned though M&A remained subdued all through 2023, the funding tempo of the fifth iteration of Ardian’s personal credit score fund was “strongly underpinned by repeat enterprise with present portfolio firms, as sponsors targeting buy-and-build methods that required follow-on financing.”
“These offers provide engaging threat profiles and accounted for in extra of fifty per cent of our quantity final 12 months, illustrating the size advantages that our giant portfolio brings,” they mentioned.
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“Our portfolio produced a resilient efficiency regardless of strain from rising rates of interest, which lifted yields on floating charge senior secured loans into the ten to 12 per cent vary – a long-term excessive.”
Brenke and Chinardet added that the fund’s resilience was on account of a “disciplined concentrate on companies with good income visibility and excessive money conversion, in addition to extra lender-friendly mortgage documentation”.
The French asset supervisor is within the technique of elevating funds for its sixth personal credit score fund.
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