In Focus Commercial Credit
Reducing volatility and losses at times of extreme stress The nature of the senior strategy combined with the resilient asset class means the risk of volatility and losses at times of heightened financial stress is considerably lower. This was exemplified during the Covid-19
pandemic. Our team worked closely with our partners to ensure they continued to provide the best possible support to their clients, as well as gathering as much data and insight as possible from our credit positions. The information we were able to gather
has given us a clear picture of the efficacy of our investment approach. Across our senior secured portfolio, there were no defaults on our facilities, and cash collections were higher in 2020 than 2019 despite the stressed environment. The robust performance can also be
attributed to our intensive portfolio management approach. This proved invaluable throughout the uncertainty of the Covid pandemic as we helped guide our borrowers, ensuring the right underwriting
August 2021
and risk approach was adopted and supporting their businesses in unprecedented times by sharing our expertise and best practice from around the portfolio. Fundamentally the approach continued
to generate strong, consistent returns despite the extreme stress.
Growth, opportunity, support We have seen first-hand the importance of deep sector expertise to navigate the non- bank lending market, by building a network of long-term industry relationships enabling a diverse and differentiated deal flow. Non-bank lending offers a profound
opportunity to deliver consistent returns with strong downside protection, while also driving a positive impact in society. The specialised and agile nature of the sector means it will continue to evolve, bringing new and exciting opportunities to the floor. We are also passionate about the potential
for positive impact through the lending we provide to non-bank lenders. This impact can be in areas as diverse as driving financial
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inclusion, regional economic development, green transport, energy efficiency in homes and more. Overall, it is clear the non-bank lending
sector is large but also continuing to grow, both in size but also in importance to what is a thriving, healthy and well-functioning economy by supporting businesses from a variety of sectors on a deeper level. CCR
Non-bank lending offers a profound opportunity to deliver consistent returns with strong downside protection, while also driving a positive impact in society. The specialised and agile nature of the sector means it will continue to evolve, bringing new and exciting opportunities to the floor
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