SimCorp Introduces Private Debt Module To Investment Platform

Jul 10 2017 | 6:08pm ET

Investment management solutions provider SimCorp has introduced private debt into the newest version of the company’s Dimension investment platform in response to the shifting focus of global asset management towards new and illiquid sources of risk-adjusted yields.

The new module was developed in partnership with clients including PKA, Denmark’s fourth-largest pension fund, the company said in a statement. The latest addition is a direct response to the growing interest in private debt by institutional investors globally, seeking risk-adjusted yields across asset classes in a continually low-interest rate environment.

The new private debt module supports buy-side operations with a vast range of loans including syndicated, term, direct, bilateral, bank and commercial loans, SimCorp added. Combined with the company’s Investment Book of Record (IBOR), the module can now be incorporated across the investment value chain, from front to back office. With the introduction of private debt as an asset class, Investment managers will be able to optimize and manage intricate private debt transactions in a highly-automated process, removing the previous difficulties of manual processing caused by private debt’s unique features such as parallel interest terms, special lifecycle events and valuation. 

In addition, the new module eliminates some of the trade flow complexities, including delayed settlements and special fees calculations, SimCorp said. 

“By partnering with PKA and using their vast experience with private debt investments, together with feedback from our wider client base, we’ve been able to address several key challenges to this unique type of investment,” said Igor Gramatikovski, Securities Product Manager for SimCorp, in the statement. “We are committed to ensuring that our investment platform delivers a strong offering across alternative asset classes, in line with changing market requirements and client demands.”

Founded in 1971 and headquartered in Denmark, SimCorp provides integrated investment management solutions to asset managers, fund managers, asset servicers, pension and insurance funds, wealth managers and sovereign wealth funds worldwide. 

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