Private placements - lessons from the past decade
With the tenth year anniversary of abrdn's private placement business last year, Andrew looks back at some of the lessons learnt.
The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.
We provide credit facilities to private equity funds so that they can bridge investment requirements without having to draw capital from their investors. The benefits across stakeholders include operational efficiency, enhanced internal-rate-of-returns (IRRs) and, in turn, less negative returns in the early years of an investment.
Why are we offering fund financing to investors:
Our Private Credit teams consist of 26 dedicated investment professionals and additional supporting resources. Below are the team heads of some of our areas:
Head of Infrastructure Debt
Jeremy is the Head of the Infrastructure Debt Team with responsibility for sourcing, analysing and managing illiquid debt opportunities within agreed policy and mandate frameworks.
Prior to joining the company in September 2014, Jeremy was Head of the Public Sector Team at Nationwide Building Society. Whilst at Nationwide, his primary areas of focus had been in Infrastructure (primarily PFI) and Social Housing where he has over 20 years of experience. Jeremy has four years’ investment experience at abrdn and 36 years’ experience in banking & finance.
At Nationwide Building Society, Jeremy was personally involved in writing in excess of £1bn loans and led the Infrastructure team from inception to a book approaching £3bn at its peak. Deals sourced included some of the first PFI hospitals; the first gearing of an infrastructure fund; the first PFI Housing transaction and the first multi-authority procured street lighting project. 36 years in industry; 4 years at abrdn. Jeremy is also an associate at the Associate of the Institute of Bankers.
Head of Commercial Real Estate Debt
Neil joined the company in 2013 and has worked in the industry for more than 30 years. He started his career with NatWest and subsequently worked for a number of international banks, including Fortis, Eurohypo, RBS and Deutsche Pfandbrief Bank, where he was the only non-German domiciled person to be given the powers of a voting member of the credit committee.
Neil has extensive experience in both originating and restructuring in the UK and Europe. This has provided ample opportunity to both initiate new relationships with borrowers and maintain good working relationships in more challenging restructuring situations. Neil is also President of the Association of Property Lenders (the UK lending representative body) and has four years’ investment experience at abrdn, and over 30 years’ in the industry. Neil is also an associate at the Associate of the Institute of Bankers.
Head of European Private Placements
Albane has been the lead fund manager of the Secure Income and Cash Flow Fund since its inception in 2017, investing in a range of private credit asset classes including Private Placement, Infrastructure Debt and Commercial Real Estate Debt. Her responsibilities also include the origination of private placement on behalf of abrdn clients. She has credit research responsibilities on the public market covering peripheral utilities, and transport / infrastructure. She also manages a Credit Fund for a large insurance client where the objective is to take advantage of opportunities to collect illiquidity premium on the credit markets.
Albane joined the company as an Investment Director in 2015 following the acquisition of Ignis Asset Management. Prior to this, she was credit analyst at Insight Asset Management where she was covering primarily Utilities, Energy and Transport. Albane has six years’ investment experience at abrdn and 11 years’ experience in the industry. Albane holds degree in MA Economics & Finance and MA Bank, Finance & International Trade.
Head of Fund Finance