Fund financing: An opportunity for insurers
A look at fund financing and why the strategy can be an attractive addition to an insurer’s portfolio.
Private Credit
An asset class combining potential for yield and exposure to unique performance drivers.
Risk warning
The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.
A range of advantages
Private and alternative credit offer investors the potential for higher yield and lower risk, relative to similarly rated public bonds. Furthermore, exposure to economic drivers generally not available in the public credit markets can result in significant diversification benefits.
ESG is at the heart of our process
ESG is central to our investment capabilities. We look to deliver robust financial outcomes for our clients – as well as actively contributing to a fairer, more sustainable world. We focus on understanding the ESG risks and opportunities of our investments alongside other financial metrics to make better investment decisions and produce superior risk-adjusted returns for our clients.
Our capabilities
Aberdeen Investments offers clients access to the major areas of Europe private credit, including commercial real estate debt, infrastructure debt, corporate private debt and fund financing among other areas.
What we offer our clients
Commercial Real Estate Debt
Commercial real estate debt finances property across a range of sectors including office, industrial and retail, with security provided by the property itself.
Infrastructure Debt
Infrastructure debt finances social and economic projects which often have monopoly-like characteristics, providing investors with uncorrelated, high quality cash flows.
Corporate Debt
Private corporate lending can take many forms. Large corporates sometimes prefer to borrow privately to circumvent the constraints of public market issuance, and loans to mid-size corporates.
Fund Finance
We provide credit facilities to private equity funds so that they can bridge investment requirements without having to draw capital from their investors. The benefits across stakeholders include operational efficiency, enhanced internal-rate-of-returns (IRRs) and, in turn, less negative returns in the early years of an investment.
Why are we offering fund financing to investors:
- We have a good short-term liquidity profile, targeting both investment grade and credit-rated facilities
- This is deemed a low risk strategy given recourse against a diversified base of institutional investors, with no evidence of historic defaults
- We have a history of delivering strong risk-adjusted returns
Meet the team
Neil Odom-Haslett
Head of Private Credit
Neil joined the company in 2013 and has worked in the credit industry for more than 30 years. As Head of Private Credit, Neil is responsible for leading on all private credit activities across Aberdeen.
Neil started his career with NatWest and subsequently worked for a number of international banks, including Fortis, Eurohypo, RBS and Deutsche Pfandbrief Bank, where he was the only non-German domiciled person to be given the powers of a voting member of the credit committee.
Neil has extensive experience in both originating and restructuring private credit transactions in the UK and Europe. Neil is also the immediate past President of the Association of Property Lenders (the UK lending representative body) and has eleven years’ investment experience at Aberdeen, and over 30 years’ in the industry. Neil is also an associate at the Associate of the Institute of Bankers.
Shelley Morrison
Head of Fund Finance
Shelley Morrison leads the strategy for Fund Finance at Aberdeen. She has extensive experience in the origination, structuring and execution of fund level debt facilities across multiple asset classes. She has been with Aberdeen since 2019. Before joining Aberdeen, Shelley was a Director in the Fund Finance team at RBS for 6 years where she managed a portfolio of subscription loans, NAV loans and GP finance to global funds across Private Equity, Private Debt, Infrastructure and Real Estate. Prior to that, she worked in structured asset finance at RBS and Lloyds for 10 years, with a focus on commercial ship finance. Shelley holds the both the IMC and CISI certificate in Corporate Finance and the CFA Certificate in ESG Investing. Shelley sits on the Fund Finance Association EMEA Executive Committee and Women in Fund Finance Committee. Shelley received a first class MA (honours) degree in Geography and an MSc in Social and Political Theory, both from the University of Edinburgh.