Liquid Alts Proliferate as Their Attributes Shine. 

Independent asset manager Prime Capital is one of the lastest firms to roll out a liquid credit fund.  The fund offers a range of alternative credit strategies, including trade finance and real estate bridge financing.  This fund will invest between 15 and 20 funds globally.  They will be split between North America, Europe, and the rest of the world.

According to managing director of the Absolute Return team at Prime Capital Tilo Wendorff, “These strategies provide – similar to hedge funds – advantageous liquidity in contrast to other forms of private debt. They have strong levels of tangible collateral (e.g. ~LTV of up to 60% in the Real Estate space). At the same time they provide attractive expected returns, mostly due to underlying complexities. The universe is very fragmented, investments are hard to source and managers have a low level of institutionalisation. The individual funds require a very targeted and carefully coordinated selection”  The fund will aim for seven to nine percent returns with an initial 30 million dollar investment. 

In a statement by CIO Dr. Werner Goricki in reference to the fund, “It makes a universe of small niche managers and strategies investable which would otherwise be very hard to invest. PCAM Liquid Alternative Credit is therefore suitable for stabilising and diversifying portfolios with very low beta to the traditional credit market. The fund is another example of our many years of successful expertise in putting together risk-return-optimized portfolios with alternative investments.” 

Prime Capital Investment Advisors is an independent asset management firm based in Frankfurt.  It specializes in a variety of practice areas ranging from wealth management, financial planning, private equity, and retirement planning.  The firm manages 17.2 billion euros across its funds.