Sightline Wealth Management Discusses Private Debt Investments with the Financial Post
With an uncertain global economy, market volatility and the potential end of a 30-year bull run looming, many investors are now looking towards private debt to achieve the diversification they need to protect their portfolios. To learn more about this asset class and the opportunities that may come with it, the Financial Post recently spoke with Sightline Wealth Management for insights.
According to Sightline Wealth Management Senior Vice President and Investment Advisor Paul de Sousa, private debt no longer merely represents endowments and pension funds. Rather, it embodies a wide range of alternative investment possibilities with their own expected returns, risks and parameters.
“We prefer ‘senior debt,’ the safest and most secure segment of that capital structure where loans provided to companies are backed by collateral—plant, equipment, inventory, real estate, personal guarantees and other assets,” says de Sousa. “There’s often a healthy yield generated by these investments, and typically, the collateral presented is well in excess of the loans provided.”
While incorporating this type of asset into your portfolio can lead to significant yields, it is not the only potential benefit of adopting a private debt strategy.
“A truly diversified portfolio limits exposure to each asset class to a level compatible with an investor’s risk tolerance,” explains de Sousa. “Private debt can provide that diversity and can continue to provide returns, even if other parts of the market experience turbulence.
However, you need a manager or an advisor who can provide the due diligence and oversight required to maximize the value of these investments.”
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc.
(“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
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