Adding Private Credit To A Client’s Portfolio

Advisors, says David McNatt, AssetMark’s senior vice president of investment strategy and development, need to consider some essential questions before recommending alternative credit strategies to their clients. Among these are:

  • What is the investor’s goal?
  • How can an alternative asset be added to achieve a better outcome?
  • Why are these strategies being employed?

Of these, says McNatt, “the investor’s goal is paramount.”

Selection of a competent manager becomes critical once a decision is reached to employ alternative credit strategies. “As with any investment in the private markets,” says iCapital’s Shah, “it’s essential to invest with managers who are very experienced. It’s especially important in private credit because managers with more experience in the space often have more leverage to negotiate covenants and an advantageous loan structure.”

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Disclosure: Brad Zigler pens's Alternative Insights newsletter. Formerly, he headed up marketing and research for the Pacific Exchange's (now NYSE Arca) option ...

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