Emerging markets: Cordiant Capital presses on with private loans
Cordiant Capital is at the vanguard of private loans, a small but increasingly important investment class in the emerging markets. Sudip Roy reports.
"Infrastructure needs for the emerging markets over the next 10 years will be more than $21 trillion. Development banks and governments can’t fund it all."
PRIVATE EQUITY IS all the rage in emerging markets but private debt is less fashionable. There are hundreds of private equity funds but there are just two private debt managers investing in emerging markets and 20 globally.
One of the leading private debt players is Cordiant Capital, a Montreal-based company established in 1999. The firm is mostly focused on loan financing to infrastructure projects across emerging markets.
"Infrastructure needs for the emerging markets over the next 10 years will be more than $21 trillion, according to the World Bank," says David Creighton, Cordiant’s chief executive. "Development banks and governments can’t fund it all. Commercial banks are pulling out. Therefore there is a real demand for finance."
Cordiant manages about $2.2 billion in emerging market loans and private equity, of which it has deployed $2 billion. It has made nearly 200 investments worldwide across 150 borrowers in 50 countries.