Interview with: Ingrid Neitsch, Head of Credit Strategies, Ignis Advisors, an asset manager attending the marcus evans European Pensions & Investments Summit 2013 talks about why investors should look into Private Credit. The 14th European Pensions & Investments Summit delivered more than 25 hours of world class briefings from some of the leading minds in the pensions industry including: AP Fonden 7, THEAM, Deutsche Bank, Institute for Liberty and Democracy, The People's Pension, China Reform Foundation and many more. Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today. For more information contact: emailus@marcusevans.com

1. Private Credit Funds:
The Next Investment Opportunity
Interview with: Ingrid Neitsch, remained consistent at L+500-800. Going forward, distressed corporate
Head of Credit Strategies, Ignis Longer-term alternative capital can take paper is expected to become more
Advisors advantage of the imbalance in risk plentiful not only in Europe and the US
premiums. but al so i n Em erging Markets .
Responses to secular and cyclical
In today’s quantitative easing environ- What are Private Credit fee changes will differ between regions, and
ment, European pension fund structures like? the palette of longer-term investment
managers face return goals that are possibilities in Emerging Markets is
moving further and further out of reach, Fees structures are similar to those expected to widen. Private Credit Funds
according to Ingrid Neitsch, Head of used in Private Equity, with a preferred have an advantage in being able to both
Credit Strategies, Ignis Advisors. One return paid to investors. There is, deploy capital quickly and maintain
of the few investment areas where however, one significant differentiator. positioning until returns are maximised.
returns can still meet or exceed plan Most Private Credit managers charge
targets is that of Private Credit, she fees on drawn rather than committed What returns can be expected?
went on to say. capital. This difference has developed as
credit investing is by nature more Managers in the Private Credit space
Neitsch will discuss in depth the limited on the upside than is equity target mid-teen returns, often with little
investment opportunities in the Private investing, resulting in a less pronounced or no leverage usage. A portfolio
Credit space at the marcus evans “J-curve”. diversified by strategy and geographic
European Pensions & Investments region can be constructed to moderate
Summit 2013, in Montreux, At the same time, Private Credit is also risk and balance the timing of capital
Switzerland, 22 - 24 April. more likely to produce dividends earlier return within target ranges. Private
and with more consistency due to the Credit provides a unique opportunity for
Why invest in Private Credit? cash flow characteristics of debt. pension fund managers to meet target
returns by taking advantage of the
Benchmarks appear unrealistic in What strategies are possible within longer-term nature of their liabilities.
today’s world, yet regulatory and this space?
political constraints decrease options
available. Many schemes are in shortfall Private Credit investors have a wide
and historically low interest rates make range of options in areas as diverse as
catching up increasingly difficult. Structured Credit, Direct Lending,
Secondary Corporates, Distressed Debt
Private
One of the few investment areas where and Emerging Market Credit.
returns can still meet or exceed plan
targets is Private Credit, a growing area Structured credit trades typically involve
of opportunity attracting a mix of both mispriced older vintage securities where
Private Equity and hedge fund
managers. Private Credit funds focus on
strategies requiring a longer investment
price recoveries are event-driven and
may still take time. Alternatively,
attractive returns can be found in new
Credit is
horizon to plaay out, and like Private
Equity funds, use committed capital to
provide the stability needed to optimally
deals involving senior and mezzanine
lending to middle market companies, as
well as rescue finance.
a growing
area of
time opportunities.
In traded corporate securities,
The timing of growth in Private Credit opportunities are centred on stressed
opportunity
funds coincides with the new market secondary issues, especially in certain
environment post-2008. Since the crisis, European regions, as well as in residual
the illiquidity premium in credit has litigation and liquidation claims. Bank
widened, as many investors have balance sheet trades are becoming
focused on maintaining liquidity in order increasingly common, as European
to be able to react to unwanted banks in particular look to offload risk to
volatility. Since early 2009 spreads in meet regulatory requirements. Banks
the liquid high yield market have are providing an increasing supply of
dropped from +1500bps to around discounted corporate paper and
+500bps, while less liquid direct lending consumer non-performing loans, as well
to larger middle-market corporates has as structured exposure to loan pools.

2. About the European Pensions & Investments Summit 2013
The Investment Network –
marcus evans Summits group This unique forum will take place at the Fairmont Le Montreux Palace, Montreux,
delivers peer-to-peer information Switzerland, 22 - 24 April 2013. Offering much more than any conference,
on strategic matters, professional exhibition or trade show, this exclusive meeting will bring together esteemed
trends and breakthrough industry thought leaders and solution providers to a highly focused and interactive
innovations. networking event. The Summit includes visionary presentations and interactive
forums on geopolitical risks in the global economy, finding opportunities for steady
returns in recalibrating markets and rethinking pension products to deliver
sustainable benefits in a new systemic context.
www.epi-summit.com
Please note that the Summit is a
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About Ignis Advisors
Ignis Advisors manages ~ GBP 1.7bn* in assets and is a specialist fund of funds team with capabilities spanning the alternative
investments spectrum including hedge, real estate, private equity and credit. Ignis Advisors is a division of Ignis Asset
Management, which provides investment services to both institutional and wholesale investors and has GBP 68.3 billion** in assets
under management.
* Ignis at 31/12/12
**Ignis at 31/12/12 (including GBP 9.3 billion of stock-lending collateral)
www.ignisasset.com
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To view the web version of this interview, please click here: www.epi-summit.com/IngridNeitsch