Why private debt for local government pension funds?
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Pension funds are increasingly concerned about cash flow management and income generation yet still require equity-like returns. We explain why local government pension funds should consider private debt to materially improve the trade-off between seeking returns and managing volatility. We show why private debt is a good substitute for listed equities and credit and offers greater certainty to both trustees and tax payers.
We explain how, even for smaller allocations to the asset class, it is possible for your pension fund to build up a relatively diversified exposure across a wide range of private debt types such as infrastructure debt, real estate debt and direct lending.
