Debt funds gain as an asset class and financing instrument

Debt funds are beco­ming incre­asingly attrac­tive — both as an asset class for insti­tu­tio­nal inves­tors and for compa­nies, for whom finan­cing via debt funds repres­ents an attrac­tive alter­na­tive to bank loans. Inter­na­tio­nal multi-asset mana­ger LFPI has now announ­ced that the LFPI Euro­pean Debt Fund, which has been fund­rai­sing since the end of 2013 and has a target volume of €400 million, has alre­ady raised half of its commit­ments after just a few months. Through the fund, LFPI Group provi­des unitran­che finan­cing and mezza­nine capi­tal, but also acqui­res loans through the secon­dary market. What advan­ta­ges does the debt asset class offer inves­tors, what are the strengths of finan­cing via debt funds for compa­nies and what oppor­tu­ni­ties does LFPI see in the German market?