PrivateDebtLIVE

A re-cap on 2020: what were the main regulatory issues that private debt managers needed to keep on top of?
What are the regulatory risks to prosecuting deals in Europe and the US?
ESG regulation and taxonomies in the context of the EU’s Sustainable Finance Disclosure Regulation
DAC6 implementation – CFOs need to be clear on what needs to be reported, by whom, and where the reports need to be filed
With AIFMD II on the horizon in 2021, what changes might be expected, in particular on distribution and the ongoing marketing of private debt investments?

How has technology improved the way that different fund strategies are monitored and reported on?
What are the best methodologies for calculating ‘fair value’ of Level 3 assets?
The role of data sourcing and data management to support asset verification (i.e. in specialist credit funds such as aviation, shipping) and complex credit assessments
What levels of transparency are managers being asked of by their investors, and what data points are investors prioritizing?
To what extent are ESG factors influencing the way private debt funds are administered and reported on?
Is there a need for tighter pricing and covenants in loan documentation, and for bespoke documentation (i.e. removing Ebitda adjustments)?

What are the ways for managers to demonstrate exceptional portfolio management to their end investors?
How has Covid-19 shaped the way managers approach liquidity and market risk in a high-stress market – what lessons and insights have they learned?
How are firms using technology and 3rd party data vendors to better understand their portfolio companies and associated risks, such as breaches of loan covenants?
How is climate change impacting credit risk?
What metrics/tools are managers using to quantity alpha in their portfolios, as well as predict future liquidity/credit risks?
What is the outlook for distressed debt in 2021? Was there an uptick in NPL default rates in certain industry sectors because of Covid and is this influencing where portfolio managers are focusing their investment ideas?

How do you view macroeconomic factors as you think about sourcing and prosecuting deals?
Are we stepping closer to a distressed cycle and if so, how are you modeling credit risk to prepare for a potential market downturn over the coming years?
What new opportunities are you seeing for your respective firms, be they in direct lending, distressed debt, special situations, mezzanine financing?
How do you think about global economic policies and government initiatives as part of your top-down approach to identifying the best risk/reward opportunities for your funds?
What macroeconomic indicators would support improved performance in Europe’s private debt market, relative to the US, and might this be realized in 2021/2022?

What is the opportunity set for direct lending strategies in 2021?
How are deal terms evolving to ensure the best outcomes are achieved – and are covenant lite or covenant loose deals a symptom of too much dry powder?
What should LPs’ return expectations be in DL funds? How do these differ in the MM versus the LMM?
Which sectors and industries offer the most attractive opportunities for DL and special situations funds?
What factors and/or KPIs do managers prioritise when sourcing and executing deals, and have these changed at all because of Covid-19?
How should one measure success (‘value creation’) in a private debt fund?
What is the deal outlook for the next 12 months?

How has the private debt secondaries market evolved in recent times?
To what extent are LPs turning to private debt secondaries, both as motivated sellers and buyers (i.e. off-setting losses in other asset classes)?
What deal flow volume and pricing trends are you seeing in 2021, and how do these compare to previous years?
How do the risk/return characteristics of secondaries differ compared to primary debt vehicles?
Assessing the liquidity mix: are you seeing a wider range of fund interests, including distressed debt, mezzanine, as well as senior debt, deepening the liquidity pool?
Could the recent pandemic act as a catalyst for broader growth over the coming years, as investors seek out diversification benefits and downside protection?