PRIVATE DEBT SECURITY AND RETURNS WITH DEBT CAPITAL Private debt is an important financing component for high-growth medium-sized companies. Investors benefit from various income components which, in addition to attractive interest rates, can also contain elements similar to equity. Around a quarter of the total income is attributable to the final profit-sharing scheme. THE MARKET: PRIVATE DEBT FINANCING Private debt comprises mezzanine and other debt financing, which are predominantly offered by institutional investors such as fund companies and insurance companies - but not by banks. In contrast to publicly placed corporate bonds, private debt instruments are usually illiquid and cannot be traded at any time. They have their origins in the Anglo-Saxon region, where they have long been used as an established form of financing for growth financing and corporate takeovers. The fund managers usually specialize in specific market segments: Senior debt refers to the financing of buyout and growth financings via senior or secured loans. The return is generated almost exclusively from ongoing interest payments. Mezzanine is a hybrid of debt and equity. It is mainly used for buyout and growth financing and is often used subordinate to bank financing. The return is fed by several income components, mainly from the current and bullet interest as well as an additional participation in the company's equity. The forms and occasions of financing credit opportunities funds are diverse. In addition to complex refinancing of companies that are cut off from the capital market for various reasons, the focus is on secondary market transactions. Also distressed debt -Fonds buy mostly senior secured loans in the secondary market at a discount to normal. In doing so, they concentrate on valuable investments in situations in which companies have got into financial difficulties. THERE ARE FOUR MAIN REASONS IN FAVOR OF PRIVATE DEBT INVESTMENTS BY INSTITUTIONAL INVESTORS: 1. Attractive and stable spreads Private debt and mezzanine offer attractive spreads on government bonds, corporate bonds and high yield. 2. Low correlation with other asset classes The low correlation with traditional asset classes ensures positive diversification effects. 3. Risk reduction Stable performance across all market cycles through a combination of different credit strategies. 4. Long-established asset class The asset class has very experienced fund managers with a proven track record and differentiated investment approaches. OUR SERVICES Golding Capital Partners offers institutional investors efficient access to the private debt asset class via specialized target funds in Europe and the USA. The aim is to build a diversified and robust portfolio for all phases of the market cycle. We attach particular importance to the thorough examination and professional selection of our target funds. Thanks to excellent networking and many years of market experience, we have access to target funds of the highest quality. Dr. Matthias Reicherter Partner, Chief Investment Officer (CIO) CONTACT IMPRINT PRIVACY HANDLING OF INTERESTS CONFLICTS MUNICH MÖHLSTRASSE 7 81675 MUNICH GERMANY NEW YORK 245 PARK AVENUE 39TH FLOOR NEW YORK NY 10029 USA LUXEMBOURG 6, AVENUE MARIE-THÉRÈSE 2132 LUXEMBOURG LUXEMBOURG TOKYO 8F PACIFIC CENTURY PLACE MARUNOUCHI, 1-11-1 MARUNOUCHI, CHIYODA-KU, TOKYO 100-6208 JAPAN COPYRIGHT 2018 - GOLDING CAPITAL PARTNERS