GIM Liquid Private Credit
The GIM Liquid Private Credit ("GIM LPC") strategy actively invests in a diversified portfolio of leading private credit vehicles that the firm has followed since 2009. The strategy targets USD 3-month SOFR* + 6% over the investment cycle.
*Secured Overnight Financing Rate
GIM LPC is listed in Luxembourg and Johannesburg.
Portfolio Highlights
(as of 30 September 2023)
*Multiple on Invested Capital; Inception: 18 August 2015
Diversified credit exposure to the U.S. middle market corporate sector
GIM LPC invests in U.S. listed credit vehicles of scale, managed by experienced private credit managers with strong direct origination capabilities, credit underwriting expertise, documentation and security skills and strong track records through the economic cycle.
On a look through basis, investors have diversified exposure to over 3,000, mainly senior secured loans to corporate borrowers. GIM also take tactical exposure to specialist credit vehicles and real estate lenders when valuations are particularly compelling.
The portfolio maintains a disciplined focus on senior secured and asset backed loan portfolios with limited exposure to cyclical sectors.
Corporate Lending
Lending to companies with EBITDA in the range of $25-250 million+ per annum, secured by receivables, inventory, plant and equipment, with substantial equity cushions.
Real Estate Lending
Loans secured by commercial and residential properties, predominantly on a senior secured basis.
Specialty Finance
Vehicles with underwriting skills in specialist credit and asset-backed lending (e.g. mortgage servicing, consumer finance).
Private Credit
An alternative to bank lending and public bond markets
Private Credit (also known as “Direct Lending” and “Private Debt”) comprises bilateral loans to middle-market corporates. GIM LPC avoids investing in vehicles that are passive participants in syndicated loans. Private credit has grown faster than any other alternative asset class since the global financial crisis, having increased from $234 billion in 2008 to over $1 trillion today.
In the Unites States private credit vehicles and non-bank lenders have surpassed banks as the primary lender to middle-market companies. Non-bank lenders currently originate 85% of middle-market loans, up from 30% in 1994.
Investors value the attractive floating rate yield that private credit offers, combined with historically low loss ratios and stable long-term returns.
Corporate borrowers value the direct relationship with lenders, often sector specialists who understand their business better than the banks and are well positioned to support their long-term growth.
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