Revolution Asset Management

Commentators warn that a new default cycle will strip the shine from private debt strategies, but not all managers have been “sitting on their hands”. And the dislocation in commercial real estate is creating new opportunities for savvy managers.

Those that have made high returns by overpaying for higher-risk/lower-quality credit have been lucky and credit conditions are unlikely to be so easy in the future, writes Michael Block. Now is the time to take a very thorough look at one’s credit exposures.

UniSuper’s mandate to Revolution Asset Management shows how important private debt is becoming to super funds as their member base matures. It also has its roots in the merger with Australian Catholic Super.

Private debt is starting to attract a broader range of investors, including high net-worth individuals and smaller funds who are searching for yield combined with capital preservation. The attraction, alongside traditional supporters among the big super funds, has also been helped by increasing concerns about inflationary expectations – whether this will be transitory – and…