Alt Credit Council’s new Investor Manager Committee launch aims to strengthen private credit understanding

Meeting

The Alternative Credit Council, the private credit affiliate of the Alternative Investment Management Association, has launched its Investor Manager Committee, a new initiative which aims to strengthen the ACC’s work on key areas where private credit market practice is still evolving, and foster better engagement between investors and asset managers in this burgeoning asset class.

The Committee is co-chaired by Erica Frontiero, managing director, Carlyle Global Credit and COO of global capital markets and head of capital solutions at the Carlyle Group, and Elena Boeva, US chief operating officer at AFLAC Global Investments.

It will aim to support the ACC’s educational and advocacy efforts to broaden the understanding of private credit amid its ongoing institutionalisation. Specifically, its work centres around the collection and analysis of private credit market data; ESG thought leadership and the development of practical support material; and educational output to help improve broader understanding of key private credit strategies.

The Committee’s first output is a private credit investor DDQ with a focus on ESG due diligence, which looks to provide a harmonised template to both tackle the continued challenges in this area and support consistent data collection across different managers and investment strategies.

The committee is made up of representatives from 23 global investors and asset managers. Along with co-chairs Frontiero and Boeva, its co-vice-chairs are Nathan Brown, chief operating officer, Arcmont Asset Management, and Stephen McClelland, director of credit strategies at the Virginia Retirement System.

“Private credit has been battle-tested through the pandemic and has moved from being an alternative, niche asset class to become a core part of any diversified portfolio,” said co-chair Erica Frontiero of the Carlyle Group. “The ACC is focused on providing a platform for both managers and investors to come together to support the sector’s continued institutionalisation.”

Noting the “many challenges” that confront both managers and investors equally in the private credit industry, Jiří Krόl, global head of the Alternative Credit Council, said it is incumbent on the ACC to provide a platform for common engagement for key stakeholders in the evolving discussions.

Co-chair Elena Boeva, US chief operating officer at AFLAC Global Investments, welcomed the ACC’s focus on private credit as an asset class, with its advancement of best practices “an important step in recognizing the growing focus for both managers and investors.”  

Nathan Brown, chief operating officer at Arcmont Asset Management, said: “Direct lending and private credit are now a well-established part of the investment spectrum, deserving of their own industry voice.  I’m delighted to work with the ACC in promoting the interests of both investors and managers in this increasingly important part of the market.”

Stephen McClelland, director of credit strategies at the Virginia Retirement System commented: “The private credit landscape has expanded tremendously in the past decade.  Working with the ACC and partnering with other long-time industry participants provides a tremendous opportunity for sharing ideas to promote responsible growth in the asset class.”