July 2019

Diversified Private Credit – pooled fund solutions for both DB and DC schemes

With UK Defined Benefit pension schemes turning increasingly cashflow negative and traditional Liability Driven Investment (LDI) portfolios offering lower returns, schemes are turning to cashflow driven investing (CDI) to better match cashflows while generating higher risk-adjusted returns. For Small and Medium-sized Defined Benefit (DB) and Defined Contribution (DC) schemes, where CDI isn’t necessarily appropriate, they too can benefit from alternative credit through Diversified Private Credit (DPC) portfolios.