Private Debt

Investment in private debt via a fund combining liquid and illiquid strategies provides significant advantages
Altamar Credit was created in January 2017 as a division of Altamar Capital Partners to take advantage of the global, and particularly European, private debt market.

In general terms, private debt refers to credit asset classes granted by non-banking financial institutions which normally come in the way of loans. As they are not securities and cannot be traded in organized markets these instruments tend to be “to buy and hold” over time through special purpose vehicles. On the more liquid side trading takes place in OTC markets.

There are different asset subclasses in the private debt market such as:

Private Debt

Infrastructure Debt

Real Estate Debt

Mezzanine Debt

Distressed Debt

Direct Lending

Private debt market is becoming an excellent way for institutional investors to protect themselves against the current low interest rate environment and structural changes in the fixed income market. For this reason, investors are shifting their investment strategy to the credit market to obtain a higher yield, better diversification and lower risk than the one offered by traditional asset classes. There are different factors that are causing the remarkable increase in the demand of private debt assets:


Insurance companies and pension funds are finding it difficult to hit their target returns due to the low yields from traditional fixed income investments. Their capacity to increase risk tolerance is limited by their liabilities and, in the case of insurance companies, by capital requirements.


Structural changes in the bond market, including liquidity reduction and an increase in correlation with other assets, are changing the way investors perceive liquidity and risk. Long term investors capable of buying and holding are ready to swap liquidity in exchange for higher returns. This illiquidity premium is making the private debt market more attractive.


Banks have been reducing their exposure to the mid-market after decades of consolidation in the sector as a response to the higher consumption of capital required for the concession of loans to mid-market companies.

Additionally the historical behavior and risk and return features of the private debt market make it attractive. Some of its advantages are:

Significantly higher yield

than that offered by other debt assets with similar rating to compensate the lower liquidity.

Lower default ratios and higher historical

recovery ratios compared to high yield bonds due to strict covenants, supervision and collateralization.

Attractive diversification due

to low correlation to other assets.

A floating structure

that acts as a hedge against rising interest rates and inflation.

As part of Altamar Capital Partners multi-asset class strategy, Altamar Credit was created to give investors exposure to the credit market. It is launching its first fund Altamar Private Debt I, which is focused on offering exposure to liquid and illiquid credit markets simultaneously. It aims to generate an attractive return in terms of relative value and prevailing capital preservation through an exhaustive investment selection process across diversified portfolio of (I) Direct Lending closed funds and (II) Senior Loan liquid funds. The geographical focus of APD I investments will be Western Europe with a limited exposure to the U.S.


Altamar integrates environmental, social and corporate governance (“ESG”) factors by implementing best market practices at all stages of the investment process. Thus, ESG factors are taken into account in the selection and analysis of investments (as part of the Due Diligence process), in the formalization of investments (by requesting ESG clauses from managers in the Side Letters and the Exclusion Policy) and in the monitoring of investments (by updating the ESG Due Diligence Checklist, analyzing the reporting on sustainability issued by managers and the ESG information collected by Altamar’s investment teams when attending their Annual Meetings).


Funds under management

Altamar Private Debt I I.I.C.I.I.C.I.L.2017Private debtSenior Loans for Mid Market CompaniesMore
Altamar Private Debt III I.I.C.I.I.C.I.L.2021Private debtCombination of direct lending managers with opportunistic credit managersMore