What types of information should investors look for when assessing the transparency of private debt managers

When assessing the transparency of private debt managers, investors should look for the following types of information:

Disclosure of investment strategy: Investors should look for information on the manager’s investment strategy, including their approach to risk management and how they select investments 1 2 .

Disclosure of portfolio holdings: Investors should look for information on the manager’s portfolio holdings, including the types of investments held and the level of diversification 1 2 .

Disclosure of fees and costs: Investors should look for information on the fees and costs associated with their investments, including management fees, performance fees, and other expenses 1 3 .

Disclosure of risk exposure: Investors should look for information on the level of risk exposure in the portfolio, including the credit quality of the investments held and the level of leverage used 2 .

Disclosure of ESG factors: Investors can evaluate the manager’s approach to ESG factors to ensure that they are transparent about their approach to responsible investing 4 .

Disclosure of market data: Investors should look for information on market trends, performance data, and regulatory developments in the private debt market 2 5 .

In summary, when assessing the transparency of private debt managers, investors should look for information on the manager’s investment strategy, portfolio holdings, fees and costs, risk exposure, ESG factors, and market data. By conducting thorough due diligence and asking specific questions, investors can make informed investment decisions and protect themselves from the risks associated with private debt investments.