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, while avoiding the volatility associated with public markets. It focuses on capital preservation by seeking to minimize 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 FOR 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

Our Strategies

Insights

Dec 04, 2024

Parallel lending: The next frontier for private credit

Lending partnerships between asset managers and European banks may lead to low-risk, highly diversified private debt portfolios and potentially attractive returns for investors, argue Gianluca Oricchio and Gianpaolo Pellegrini.

Nov 26, 2024

Where complexity meets flexibility: An introduction to Capital Solutions

Many companies in Europe urgently need transformation. Private capital can help, argues Carlo Bosco.

Nov 21, 2023

The Muzinich Insurance Podcast

Please click to listen to our inaugural Insurance Podcast. Over a series of podcasts, we'll be tackling a range of insurance asset management topics, which we hope will provide useful insights for our insurance clients and contacts when thinking about their own investment decisions.