Ultra-rich families with cash on hand pile into private debt
Michel Andre Heller is looking to lend when credit is tight.
The London real estate adviser to a billionaire family from the Middle East is lining up deals of as much as 5 million pounds ($6.2 million) for U.K. residential developments and more than double that amount alongside other investors for bigger properties, such as hotels or offices.
The private debt market “is more than trickling along for us,” Heller said. “From a family office perspective, you don’t want to take on too much risk, but you still want to deploy capital.”
As the coronavirus upends financial markets, family offices with money to spend are boosting private debt and credit holdings to take advantage of cheaper valuations and avoid the volatility of stock markets. Meanwhile, central banks are keeping economies afloat with cheap-money policies and negative yields, making assets that used to preserve and grow family fortunes less effective.
https://www.msn.com/en-us/money/markets/ultra-rich-families-with-cash-on-hand-pile-into-private-debt/ar-BB13yWTN?li=BBnb7Kz