Nick Dignam from Fortitude Investment Partners shares insights with Lachlan Maddock from Fortitude Investment Partners on how a diversified portfolio in mid-market private equity is structured. The Inside Adviser
The world of alternative investments is at a crossroads. As markets defy expectations and liquidity concerns take centre stage, investors find themselves forced to rethink how they deploy capital in an increasingly complex environment.
Alceon receives a Commended rating from Evergreen
Financier and alternative investment manager Alceon has received a ‘Commended” rating by investment research house Evergreen Ratings for its Debt Income Fund.
This rating means Evergreen has confidence in the investment product, which has scored consistently well across most areas of Evergreen Ratings’ research and analysis framework.
The fund has a high probability of meeting its objectives and is reasonably well-designed, with fees more or less in line with the nature of the product and its peers.
Over the 12 months to August 2021, the fund posted an 8.40% return, which equates to an annualised return of 8.50% since inception in October 2019. It targets high risk-adjusted returns and looks to return to investors between 5% and 7% a year, after fees.
The fund holds a portfolio of loans primarily secured by registered first-ranking mortgages held over Australian property. Alceon has limited its investing to secured and senior-ranking loans that have a maximum loan to valuation ration of 65 per cent.
Evergreen Ratings director Angela Ashton says: “In today’s low-Interest-rate environment yields have experienced significant compression, across cash, fixed interest and equities asset classes. Listed equity market valuations are at all-time highs, which makes it very challenging for investors who are seeking downside protection. However, in our view, private debt provides the dual benefit of yield and downside protection.”
Overall, it’s a positive ratings recommendation for the Alceon Debt Income Fund. Evergreen is confident in its rating, saying it targets “high-quality borrowers that have strong management teams, are well-capitalised and well-resourced, and can demonstrate a strong track record of successful project delivery.”Â
Alceon is a financier and multi-strategy alternative investment manager established in 2010, with funds under management of almost $3 billion across asset classes including real estate, private equity and listed equities. It has more than 47 investment and operations professionals.
Since 2011, no Alceon real estate debt investment has lost interest or capital.
