The transformation and development of commercial mortgage loans over time have made them a significant and promising part of the investment thesis for insurance companies, becoming a mainstay asset class for many investors.
Despite limited M&A and IPO activity, the diversification profile of a secondaries-focused strategy may boost distributions and liquidity compared to primaries.
Combining middle market loans with strategically sourced deals in private placement and project finance markets allows for a more diversified portfolio that has the potential to deliver returns that have been less correlated to economic cycles.