Resilient Outcomes Amid a Turbulent Ride
The unprecedented market turbulence sparked by the COVID-19 outbreak last year struck both public and private markets, yet several private market sectors demonstrated remarkable resilience amid the challenges of the ongoing pandemic. Institutional investors continued to see private markets as a means of generating their target returns in a low-yield environment, and the overall transaction flow by year-end was strong. To find out which sectors are holding up well, which ones remain challenged, and where investors should expect to see opportunities next, Pensions & Investments spoke with Eric Lloyd, global head of private assets at Barings; Scott Baskind, head of global private credit and chief investment officer at Invesco; and Theodore Koenig, president and chief executive officer at Monroe Capital.
Pensions & Investments: As developed markets emerge from the COVID-19 pandemic, one of the remarkable takeaways is the resiliency of private capital, even amid the initial volatility in both public and private markets. Could you share your experience with how the private markets performed?
THEODORE KOENIG: You mentioned resiliency. We’ve certainly seen that, but we’ve also seen consistency in private credit and that inspired a sense of certainty among global investors. As a result, borrowers came into the private markets for capital at a time when there was very little certainty in the public markets.