This episode coincided with the launch of the March 2023 capital raise for our flagship local and offshore Private Debt offerings.
The attraction of private debt for investors is a mix of inflation-beating returns through double-digit yields and reduced volatility. Coupled with our focus on capital preservation, Westbrooke’s private debt suite has become paramount in this volatile investment environment.
In this interview, Richard Asherson (Managing Director of WAAM UK) and James Lightbody (Investment Associate – WAAM UK) discussed the UK market and the conditions under which the Westbrooke Yield Plus fund operates, as well as the success and challenges faced. This fund – which has a 5 year track record of cash plus 13%-14% across more than 50 deals – is focused on capital preservation. The fund delivers an asymmetric risk/return profile to investors, by focusing on providing loans to lower & middle-market UK companies and real estate sponsors.
The interview included topics such as:
- The way property valuations behave in a time of rising interest rates and lower cap rates
- Pricing for risk in the capital stack, particularly as loan-to-value ratios change over time
- The importance of being strict and saying no to marginal opportunities, with a lovely quote in the show that “deals are like busses – one comes around every five minutes!”
- The way in which Westbrooke competes against traditional banks in debt-led structures
- The relative appeal of debt vs. equity in this environment
- The evolution of market conditions: post-COVID vs. pre-COVID
- A few real-world examples of transactions that Westbrooke has been involved in
With an established track record of successfully having invested over R7 billion across more than 175 private debt transactions across three continents, investing in one of Westbrooke’s Private Debt strategies provides investors with a unique investment advantage in a challenging macroeconomic environment.
- Episode 59 – background to alternatives
- Episode 63 – balancing balance sheets
- Episode 69 – investing in private debt
- Episode 73 – venture capital investing
- Episode 76 – private equity investing
- Episode 81 – hybrid capital
- Episode 87 – USA mobile home park investing
- Episode 94 – the Westbrooke portfolio
- Episode 99 – what’s happening in the UK
- Episode 103 – alternatives – the wealth management view
- Episode 110 – raising capital