Private Credit
Closely connected for
enhanced outcomes
Through a differentiated deal origination pipeline, we connect our investors to lending opportunities with strong potential for consistent, uncorrelated returns.
From our well-established position in the Private Credit industry in Europe, we provide institutional investors with access to some of the leading loan opportunities in the region. Our highly experienced investment team draws on our strong origination network and deal-sourcing skill as they seek to deliver attractive solutions in direct lending and real estate debt.
At a glance
Source: Federated Hermes as at September 2023.
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.
The pillars of our offering
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?
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
Latest Private Markets insights
See our other Private Markets asset classes
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:
Existing clients can also contact our IR team: [email protected]
Closely Connected
For enhanced outcomes
