GIC Says Private Credit Offers Best Reward for Risk
- Deals done are for firms with quality cashflows: Jaensubhakij
- GIC Wednesday reported its worst five-year returns since 2016
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Singaporean sovereign wealth fund GIC Pte is shifting money toward private credit, betting tighter lending from banks will convince companies to pay more for the capital they need to run their businesses.
GIC chief investment officer Jeffrey Jaensubhakij said private credit — the business of non-banks lending directly to companies — is an asset class that currently offers the “most attractive” risk-reward profile. Rising interest rates are pushing up returns while the types of deals being done tend to be for companies with higher quality cashflows.