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The views expressed herein do not constitute research, investment advice or trade recommendations, and do not necessarily represent the views of all AB portfolio-management teams and are subject to change over time.
A (Moderate) Decline in Asset Yields, but Above-Average Return Potential
*AB estimate for average yield on new-issue middle market loans in 2024, assuming SOFR of 4.75%, spread of 5.25% and 1%-1.5% original issue discount.
As of February 29, 2024
Source: London Stock Exchange and AllianceBernstein (AB)
Emphasis on Asset Selection, Portfolio Construction
More Robust Deal Activity
A Bigger Opportunity Set
The views expressed herein do not constitute research, investment advice or trade recommendations, and do not necessarily represent the views of all AB portfolio-management teams and are subject to change over time.
Brent Humphries joined AB in 2014 as a founding member and President of AB Private Credit Investors, where he has primary responsibility for overseeing all aspects of the business, including chairing the investment committee, fundraising, investor relations, investment originations, structuring and underwriting, as well as ongoing portfolio management and compliance. He previously held the same position with Barclays Private Credit Partners. Prior to joining Barclays, Humphries served as group head, generalist financial sponsor coverage for Goldman Sachs Specialty Lending Group, and later led its structured private equity initiative. Before that, he served as a partner and managing director of the Texas Growth Fund, a middle market private equity firm. Humphries previously worked in leveraged finance with NationsBank and J.P. Morgan, and as a financial analyst with Exxon. He holds a BBA in finance with an emphasis in accounting from the University of Oklahoma and an MBA from Harvard Business School. Location: Austin
David Kuck joined AllianceBernstein in 2020 and is currently a Managing Director of Private Credit Product Strategy for AB Private Alternatives Business Development, where he is involved in business and product development, primarily for AB Private Credit Investors. Previously, he was a senior high-yield research analyst at Wells Fargo Securities, where he covered the food and beverage, food retail and restaurant sectors. Prior to that, Kuck worked in Wells Fargo’s Leveraged Finance group and BMO Capital Markets’ Food, Consumer and Retail Investment Banking group. He began his career in risk management consulting at Ernst & Young. Kuck holds a BBA and MSA from the University of Notre Dame. Location: Nashville
Is an M&A boom brewing?
Scott Schefrin, Eugene Smit | 10 February 2025This essay considers the role of tokens and crypto assets as investments.
Inigo Fraser-Jenkins, Alla Harmsworth | 08 February 2025We started the year having discussions with a large number of chief investment officers (CIOs) and allocators. In this short note, we reflect on the key common messages that came out of those discussions, points of consensus and important open questions for the outlook. We reflect on how those perspectives overlap with our view that a change in macro regime is the most likely description of the outlook. There was strong agreement among investors on a positive view for risk assets and an overweight position in the US. The area of most agreement in terms of where to increase allocations was private assets, especially private debt. We discuss the key issues that investors have raised across equities, fixed income and alternative assets, and also their views on crypto.
Inigo Fraser-Jenkins, Alla Harmsworth | 27 January 2025This information is for exclusive use of the wholesale person to whom it is provided and is not to be relied upon by any other person. It is not intended for retail or public use and may not be further distributed without prior written consent of ABAL.
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