Pension fund demand drives private debt platform launch

By Daniel Lanyon on Tuesday 11 July 2017

Alternative Lending

Simcorp has announced the introduction of private debt into the latest version of its investment platform


SimCorp, a provider of investment management solutions to the global financial services industry, has introduced private debt into the latest version of its investment platform, SimCorp Dimension.

The new private debt ‘module’ is part of SimCorp's  was developed in partnership with clients, including, PKA, Denmark's fourth largest pension fund with over €33bn in AUM.

The latest addition is a direct response to the growing interest in private debt by institutional investors globally, the firm says, who are seeking risk-adjusted yields across asset classes, in a continually low-interest rate environment.

“Private Debt is now considered an established asset class in many regions. Post the 2008 credit crisis, with banks consolidating their balance sheets, institutional investors have poured into the opening left by them. In recent years, its returns and popularity have even risen over and above traditional bonds, as global political uncertainty has intensified,” The firm said in a release

The new private debt module supports buy-side operations with a vast range of loans including syndicated, term, direct, bilateral, bank and commercial loans.

Sofie Klarskov Simonsen, PKA, said: "With low interest rates and a rapidly growing number of financial instruments available, we've had to think out of the box to ensure we are able to pay out future pensions to our members. Private debt is now quite a large portfolio, alongside real estate. Its risk/return ratio is particularly attractive to pension funds like us, and compatible with our long-term strategies."

"The new Private Debt module supported by SimCorp's Investment Book of Record (IBOR), means we have a front-to-back view of our private debt transactions. It is a new module with immense potential, which when further enhanced will play a significant role in our performance and reduce our operational risk significantly. We are very pleased to have been involved in this process and to have helped shape the functionality and requirements."

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