Private Credit

Closely connected for
enhanced outcomes

At a glance

0
loans completed since 2015
$ 0 bn
deployed
0
Average years of experience in the team

Source: Federated Hermes as at 30 June 2024.
The value of investments and income from them may go down as well as up, and you may not get back the original amount invested.

Patrick Marshall
Quote

Our distinct origination capabilities working alongside some of Europe’s leading banks generates significant deal flow, allow us to access high quality credit opportunities.

Why Federated Hermes Private Credit?

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Differentiated origination
Our industry connections allow us to provide our clients with access to the broadest range of transactions in the region. Our longevity and experience has allowed us to draw on a deep network of sponsors and industry contacts from which we source high-potential opportunities. We employ a dual origination strategy that combines exclusive access to transactions from major European banks with local operator agreements in markets where non-bank lending is less established, alongside our own origination channels.
Cross-cyclical experience
Our investment team is highly experienced throughout all stages of the economic cycle. The team has significant restructuring expertise which can help protect our investors in a downside risk scenario. Our intimate market knowledge and track record has been instrumental in the success of our Private Credit franchise to date.
ESG overlay
We are among the innovators of ESG integration into Private Credit. As well as leveraging deep knowledge and expertise from the wider Federated Hermes business, we use proprietary tools including our carbon calculator and ESG risk weighting system to form a full analysis of ESG risk on all borrowers. When we structure loans, we take into account ESG factors to force change in behaviours with the aim of protecting our investors and providing superior outcomes.

Our Private Credit strategies

Corporate Direct Lending

Direct, senior secured lending to European small and mid-sized businesses has the potential to deliver income above levels provided by comparable fixed income assets. Our direct lending strategy aims to generate attractive risk-adjusted returns through capital preservation and stable income. Our clients have historically benefited from our highly risk-managed approach, which incorporates ESG and focuses on lending to high-quality businesses in non-cyclical sectors.

Investment philosophy


Our investment performance is built on the strength of our deal-sourcing skill. We maintain a pipeline of high-quality loans to issuers in non-cyclical sectors. These opportunities are largely derived from exclusive co-lending agreements with select major European banks. Our investment team also sources senior-secured and unitranche loans directly through its extensive network of contacts across Europe.

Investment process


Our differentiated origination capabilities allow us to invest in what we believe to be the highest-quality loans that meet our stringent criteria and that also afford us traditional lender protections. The team undertakes intensive fundamental, bottom-up credit analysis to assess the creditworthiness and ESG profile of any potential investment.

European Real Estate Debt

Real Estate Debt offers investors the potential for stable income from rents, along with capital protection against downward movements in the value of the underlying assets.

Our Real Estate Debt team comprises highly experienced professionals who target consistent, uncorrelated income from sustainable real estate assets. This offering is built on the foundations of our longstanding real estate investment platform, which has been serving institutional clients since 1983. Our clients enjoy the potential to benefit from our relative-value approach and broad access to some of the leading investment opportunities in the market.

Investment philosophy


Our team’s investment approach is founded on the principle that real estate is an operational asset from which the majority of long-term total return is generated from income. This approach allows us to focus on delivering strong and stable performance throughout the market cycle. We aim to achieve this through disciplined underwriting that focuses on the property’s viability, and uses high-quality structuring and covenants designed to ensure stable interest payments (and ultimately income) throughout the life of the loan.

Investment process


Our differentiated origination capabilities allow us to invest in what we believe to be the highest-quality loans that meet our stringent criteria and that also afford us traditional lender protections. The team undertakes intensive fundamental, bottom-up credit analysis to assess the creditworthiness and ESG profile of any potential investment.

Who we are

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Closely connected for enhanced outcomes

Heritage and track record​

We have been connecting clients to Private Markets opportunities since our first real estate investment in 1983.​

Client-centric investing​

We’re passionate about connecting clients to innovative investment solutions that seek to deliver financial, as well as social and environmental returns.​

Access to high-quality investment opportunities​

Our 40+ year track record is driven by a mindset of building and nurturing long lasting relationships that deliver outcomes.​

Enhanced outcomes and portfolio diversification

We believe our experience, deep networks and partnership approach enable us to get clients closer to the opportunities in Private Markets – because we are.

Uncover the real potential
in Private Markets

Connect with us to find out more:

Gary Horton

Director, Head of Distribution - Australia & New Zealand

Existing clients can also contact our IR team: [email protected]