Zusammenfassung
Introduction
Private debt has a diversification problem. Not because investors ignore diversification, but because many apply the same portfolio construction logic they use in other asset classes.
This approach fundamentally misunderstands the nature of private debt and is unlikely to make the most of a limited private debt allocation. From loan vintage to lending strategies to the fact that company size doesn't always equal safety, private debt is different, and too few investors are taking these differences into account.
Petr Rojicek
The rewards of private debt are clear, but the risks are not always as visible. Investors should stop transposing approaches from other asset classes and build portfolios that reflect what makes private debt different.
Key takeaways
Loan vintage is a far less appreciated risk. A portfolio of loans that looks well diversified on paper can in reality be concentrated around one point in the credit cycle.
More risk doesn't automatically equal more reward, and the upper market isn't always the safest bet. Investors should diversify across lending strategies and company sizes rather than concentrate in a single segment.
A single specialist fund is typically invested in around 25 to 40 loans, so even one default can have a meaningful impact, and the investor depends on one manager's sourcing network and judgement of deal risk.
Backing two or three brand name managers often creates the illusion of diversification while increasing risk. Each fund balances its own portfolio, and three individually balanced funds can all be balanced in the same direction.
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