Private credit investments require a lengthy due diligence process and are difficult to source, legally intensive, and complex to model. As a result, the asset class remains highly inefficient, enabling the potential for risk-adjusted returns that are superior to traditional fixed-income investments.
Private Debt Median Net IRR by Vintage Year
Source: Preqin Private Debt Online. Vintage Data through June 30, 2019
Correlation to Alternative Lending Index
Source: Bloomberg; Finitive analysis. Alternative Lending Index is a custom index consisting of industry benchmarks from 2011 to 2016.
Low Correlation
Including private credit assets in an investment portfolio may create valuable diversification benefits, given low correlation to other fixed income instruments.
Low Volatility
Private credit's standard deviation of returns is lower than other asset classes.
Source: Bloomberg; Finitive analysis. Alternative Lending Index is a custom index consisting of industry benchmarks from 2011 to 2016.
Transactions listed on Finitive's platform contain substantially all of the due diligence materials that an institutional investor would produce internally.
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Zero-Fee Model
Investors pay no fees to Finitive. Fees are paid by Finitive's originator partners.
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Research & Ratings
Finitive's comprehensive investment memos and ratings bring transparency to traditionally opaque investment opportunities, accelerating and simplifying investors' due diligence process.
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Alignment of Interest
Finitive's team invests in each transaction alongside or subordinated to investors, unless otherwise disclosed.
Typical Transactions
Finitive is unconstrained by either fund structure or mandate, providing the flexibility to transact across the capital structure and various spectrums of risk, asset class, geography, and transaction size.
Attractive Risk-Adjusted Returns
Finitive seeks to identify private credit opportunities that offer attractive
risk-adjusted returns relative to other investment opportunities.
