Parallel Lending

Launched in 2018, the Parallel Lending Strategy co-originates loans with local and international banks to provide SMEs with financing solutions which complement the normal lending practices of banks. It offers investors the opportunity to benefit from an attractive income stream in the implied BB European credit risk, while avoiding the volatility associated with public markets. It is underpinned by a focus on capital preservation thanks to the minimization of tail risks.

The Strategy seeks to provide stable returns and emphasizes risk management through a disciplined research process and strong diversification across industry, company and geography. The investment team utilizes a combination of proprietary quantitative analytics, including innovative Artificial Intelligence/Deep Learning systems, as well as fundamental qualitative research to all investments.

Strategy Inception

2018

Portfolio Manager Locations

Dublin, London, Madrid, Milan, Paris, Frankfurt

Our Advantage

  • Robust risk management approach with an intense focus on credit quality, diversification and granularity
  • Differentiated lending model where we lend alongside banks which speeds up deployment
  • Use of artificial intelligence (AI) based on Deep Learning as part of the investment process

 

Capital at risk. The value of investments and the income from them may fall as well as rise and is not guaranteed. Investors may not get back the full amount invested.

Credit Risk:  the risk that an underlying borrower will be unable to pay principal and interest when due.

Small and Medium Sized Enterprise (SME) Risk: Investments in small and medium sized unquoted companies are intrinsically riskier than in quoted companies as the unquoted companies may be smaller, more vulnerable to changes in markets and technology and dependent on the skills and commitment of the management team.

“Our origination model is based on parallel lending/asset sharing alongside banks which enhances the speed of capital deployment. For investors our credit programme is specifically designed to minimize the impact of tail risks while maximising return potential”

Gianluca Oricchio, Head of Parallel Lending and Chief Data Scientist

Photo of Gianluca Oricchio, Head of Parallel Lending and Chief Data Scientist

Insights

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May 13, 2022

Parallel Lending Investment Strategy; A Primer

The growth of non-bank financial intermediation (“NBFI”) is a clear worldwide trend over the last 15 years.

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