Sovereign funds seek out yields in illiquid private debt funds
Research firm Preqin says 35% of sovereign funds now invest in private debt, up 11 percentage points from 2015
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London
SOVEREIGN wealth funds (SWFs) seeking higher returns other than from mainstream bonds are helping to drive a boom in specialist private debt vehicles that can provide loans for everything from aircraft leasing to lawsuit financing.
Such specialist funds make their returns in a number of ways, including lending to small and medium-sized firms, investing in distressed assets or by providing infrastructure project finance.
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