Welcome to the first monthly digest about Private Debt and investing in Digital Lending providers. We have hand-picked thought pieces and new information relevant to the topic from the past month.
Private Debt
- Positioning for downturns with Private Debt: The critical role of the attacking defender
- Commentary: Delayed impact – private debt's post-COVID-19 reckoning
- 5 reasons why private debt should be on your investment radar
- Developments of Creditor Rights in Private Debt
- Achieving target returns from private debt funds isn't easy
1. Positioning for downturns with Private Debt: The critical role of the attacking defender
This thought piece makes an amusing analogy between the role of different asset classes and players roles in a soccer team. Private debt investment is likened to attacking defender or wing-back helping the team to score without neglecting defending duties.
2. Commentary: Delayed impact – private debt's post-COVID-19 reckoning
The lack of corporate defaults thanks to fiscal stimulus creates uncertainty about what the future brings when the stimulus checks dry up. Investors are increasingly deploying new debt capital to non-cyclical businesses.
3. 5 reasons why private debt should be on your investment radar
Private debt does not experience the same level of volatility as listed bonds or equities. A careful choice between floating and fixed coupon investments is vital given the expected rise in inflation. The asset class is delivering attractive returns despite the low-interest-rate environment.
4. Developments of Creditor Rights in Private Debt
A legal thought piece on unitranche private debt transactions and the rights of the senior revolving debt facility investors
5. Achieving target returns from private debt funds isn't easy
Private debt funds aim to achieve double-digit returns. Nevertheless, private debt costs the borrower about half of the cost expected from the Private Equity funds.
Digital Lending
- Thoughts on the Big Trends for Digital Lending in Asia in 2021
- Soft-touch regulation for digital lending
- Digital lenders on fundraising spree
- Matching the Challenger Banks in Digital SME Lending
- Jeff Keltner from Online Lending Startup Upstart Explains how the Modern Digital Lending Process Works
- Fintech Lenders Will Come Roaring Back As Economy Re-Opens
- The AltFi team's alternative lending predictions for 2021
1. Thoughts on the Big Trends for Digital Lending in Asia in 2021
Digital lenders passed the pandemic tests, continue growing, and now they are buying banks
2. Soft-touch regulation for digital lending
A good short overview of business models and regulatory regimes for digital lenders in India. The regulation is vital for promoting ethical and sustainable lending practices.
3. Digital lenders on fundraising spree
Digital lending in India has grown to $100 billion in 2019 with 43% average annual growth. The large digital lenders like IndiaLends, KreditBee and True Balance are ramping up funding for further expansion of the loan books.
4. Matching the Challenger Banks in Digital SME Lending
More than 80% of UK SMEs are frustrated with their current lending experience. SMEs now turn to the challenger banks for their debt funding needs. This is bad news for smaller banks that lose market share both to top banks and the challengers.
5. Jeff Keltner from Online Lending Startup Upstart Explains how the Modern Digital Lending Process Works
An inside look into the kitchen of a digital lender and how technology is leveraged to deliver accurate risk underwriting and great customer experience at low unit costs.
6. Fintech Lenders Will Come Roaring Back As Economy Re-Opens
A look into the US digital lending market, where the lenders have shown great business cycle resilience growing on average 47% year on year for the past five years.
7. The AltFi team's alternative lending predictions for 2021
2020 was the year of alternative lending and one specific type of lending will shine in 2021 - Buy Now Pay Later.
Kilde is a regulated investment platform for alternatives. We operate as a two-sided platform connecting institutions / HNWI with securitised private investments. Our main alternative asset classes are private debt, venture debt, and recurring revenue financing. Kilde has partnered with leading non-banking consumer & SME lending firms to give investors safe and controlled access to consumer lending assets. Our unfair advantage is vast accumulated data on consumer & SME assets performance as well as scalable investment and securitisation tech platform. Thanks to Kilde’s license for dealing in securities, we securitize alternative investments into digital securities.
