Global Private Credit
The global private credit strategy provides exposure to a diversified private credit portfolio through opportunities in direct lending (middle market corporate credit), real estate debt, infrastructure debt and specialty finance - all in an open-ended fund format. The purpose of the strategy is to provide institutional investors with a portfolio of income-generating private debt securities and debt-like instruments, diversified by both geography and sector.
Key Highlights
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Focus: delivering significant income while mitigating downside risk and preserving capital
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Emphasis: predominantly floating rate loans (corporate, infrastructure, specialty finance, real estate) seeking to deliver high income levels with low interest rate sensitivity
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Diversification: By geography and sector: sub investment-grade transactions in an unhedged open-ended portfolio
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Fees: a modest management fee and no carried interest fees translate into net returns that benefit clients.
Investment Approach
Philosophy:
With over 35 years of experience managing alternative and credit investments, our competitive advantage is a firmly established global private asset platform. Our philosophy is to build, protect and grow a diversified income stream for our clients.
Our solutions are built around a team-based model, ensuring a consistent investment approach in the management of our credit portfolios. The private markets team is fully integrated into the deep credit research and trading platform at TDAM. The strategy utilizes the independent credit research and risk management teams and features a robust due diligence process honed over decades. The private credit origination team has developed legal cooperation agreements to gain access to the deep and extensive corporate relationships and loan origination capabilities at TD Securities Inc. and the wider Toronto-Dominion Bank ("TD Bank Group"), to help source the most attractive opportunities. We believe that our commitment to our people and our disciplined, repeatable processes will help drive strong results for our clients over the long term.
Investment Process:
We adhere to a rigorous independent credit research philosophy. Governance and oversight include a 'Global Private Credit Advisory Group' composed of experienced public and private credit analysts as well as investment risk professionals. In addition, the 'Alternatives Investment Committee' will bring TDAM's substantial private market expertise to the table to combine both private market and credit research oversight. Portfolio construction and management functions remain separate from credit research to ensure client objectives are prioritized. Lastly, independent third-party private credit valuation will mark loans on a monthly basis to ensure pricing integrity.
