Mercer talks PCX and global private credit capability
Sections:
Introduction to PCX and Private Credit
Challenges for Non-Institutional Investors and PCX Solutions
Mercer's Expertise and Role in Private Credit
Role of Private Credit in Portfolio Construction
Factors of Manager Selection
Key Highlights:
Mercer’s Expertise in Private Markets:
Mercer has over 220 private market professionals with more than 20 years of experience. This extensive experience provides them unparalleled access to managers and strategies, enabling unique insights and better deals for their clients.
Role of Private Credit:
Private credit is considered a core holding within a total portfolio due to its ability to provide consistent and higher income levels compared to fixed income alternatives. It is placed in the alternative camp due to liquidity issues and non-correlated behavior with equity and fixed interest markets.
Client-Centric Approach:
Understanding the client’s objectives is crucial in sourcing, due diligence, and rating of private credit investments. Mercer screens around 300-400 opportunities annually but only invests in about 20, demonstrating a high degree of selectivity.
Manager Selection Factors:
Mercer assesses managers based on four main factors: business management, alignment, strategies, and track record. These factors include governance, team quality, incentivization, fund features, execution capabilities, and proven performance.
Importance of Local Presence:
Having a local presence is critical in private markets, as these are relationship-driven. It’s essential not only for originating investments but also for accessing a variety of sources and exiting investments at the appropriate time.
