Private debt managers may justify withholding certain information from investors by citing the following reasons:
- Confidentiality: Private debt managers may withhold information related to the confidentiality of the borrower issuing the private placement debt, which is necessary to protect the borrower’s sensitive financial information 1 .
- Competitive advantage: Private debt managers may withhold information related to their investment strategy or portfolio holdings to maintain a competitive advantage in the market 2 .
- Asymmetry of information: Private debt managers may withhold information due to the asymmetry of information between investors and managers, which can make it difficult for managers to disclose all relevant information to investors 3 .
- Complexity: Private debt investments can be complex, which can make it difficult for managers to provide complete and accurate information to investors 4 .
- Lack of available data: The lack of available data in the private debt market can make it difficult for managers to provide complete and accurate information to investors 5 .
In summary, private debt managers may justify withholding certain information from investors by citing confidentiality, competitive advantage, asymmetry of information, complexity, and lack of available data. Family offices should conduct thorough due diligence, ask specific questions, and collaborate with other family offices to ensure that private debt managers are transparent about their investment strategies and activities.