Benefits of Private Debt
Attractive Returns
In the current market situation, the combination of high illiquidity premiums and complexity premiums makes private debt investments attractive for yield-driven investors.
Portfolio Optimisation
Private debt offers institutional investors additional avenues for diversification, reflecting its historically low correlation with traditional investments. Allocations to the segment can enhance portfolio return potential while smoothing volatility and contributing to a targeted reduction of overall risk.
Stable Cash Flows
A key advantage of private debt funds can be seen in its stable and predictable cash flows, which are typically more reliable than those of comparable equity investments given the seniority of debt in the capital structure.
Lending Mark-up as a Safety Buffer
The lending mark-up embedded in each financing arrangement provides an additional margin of safety, thereby reducing investment risk. In contrast to real estate equity funds, private debt investments do not rely on rising asset prices to achieve their targeted returns.
Regulatory Benefits
Compared to equity funds, debt funds are subject to lower capital requirements under Solvency II and CRR III. At the same time, tightening regulatory frameworks are further constraining bank lending. Private debt is well positioned to close this gap, the expected shortfall over the upcoming years in funding could present significant opportunities for institutional investors.
Private Debt with BF.capital
BF.capital’s bespoke private debt solutions combine more than 25 years of experience and a strong market presence together with access to an international network. The company provides institutional investors with tailored exposure to corporate, infrastructure, and real estate debt, offering exclusive transactions and complex financing structures designed to meet specific requirements.
Through a end to end approach, BF.capital supports its clients along the entire value chain – from fund structuring to portfolio management and target-oriented reporting. Investors benefit from the firm’s expertise, robust deal flow, and best-in-class service.
Our Investment Solutions
Direct Lending
BF.capital structures direct lending funds in the real estate debt segment to finance refurbishments and property developments in Germany, Austria, and Switzerland. The company places a particular focus on the ESG transformation of existing building stock, promoting sustainable solutions for the real estate industry. Leveraging its expertise, BF.capital creates the framework for investments that are both ecologically responsible and economically sound.
Private Debt Fund Investments
The firm provides comprehensive advisory and management services for private debt fund investments tailored to clients’ individual objectives. As a partner of the W&W Group, the company supports the management of its private debt programme. Beyond this, BF.capital develops autonomous and bespoke investment concepts – including private debt umbrella funds – that enable diversified access to international financing markets.
Bespoke Investment Solutions
The company complements its platform with customised investment solutions and co-investment opportunities, providing greater diversification and flexibility to meet specific client objectives. Through separately managed accounts, BF.capital structures individual private debt solutions precisely aligned with investor requirements. In addition, the company supports institutional investors in designing and implementing tailored fund strategies and structures.