Key facts

Asset class

Private debt is a well-established asset class in the United States and is on the rise in Europe and Asia. In contrast to traditional bank financing solutions, in private debt, a contractual coupon over a pre-defined maturity is agreed directly between lenders and borrowers. Contrary to traditional debt/bond markets, there is no efficient secondary market. As a result, investors are compensated with an illiquidity premium besides the credit risk premium.

Risk management

In order to ensure consistency in terms of the risk/reward characteristics of our products, Vicenda AG applies a comprehensive risk management and credit screening process. This includes the usage of data-driven and validated quantitative risk models as well as the longstanding expertise of our staff.

Borrowers

The borrowing entities range from large to small corporates. We cover sectors and financing cases that tend to be neglected by banks for some of the following reasons:

• General strategic shortcomings
• Unfavourable conditions
• Partly due to a lack of knowledge of the sector / underlying risk
• High costs of capital for banks
• Tight execution timelines
• Lack of flexibility in terms of the bank's internal standards
• Bank's restricted credit policy or risk appetite

Investment approach

Our selection approach is geared to generating superior risk/reward opportunities for our investors. Investors benefit from an underfinanced sector and the strict risk vs. reward analysis we apply. If needed, collateralization or loan insurance is integrated into financing transactions. The selection process combines quantitative risk models with in-depth sector analysis to ensure the needs of all parties are understood. Our structuring expertise helps us to effectively mitigate potential legal risks.