Emma Huepfl discusses trends towards the diversification of risk at the CREFC Autumn Conference
The Laxfield co-founder’s views on the role of debt in the diversification of risk in investor strategies were quoted in Real Estate Capital ’s account of the panel discussion at the London real estate event. Lesley Chen Davison, director of banking and treasury at Delancey, was asking the questions:
Chen Davison: Is diversification necessary in all investment strategies, or can investors be choosier in the current market environment?
Huepfl: “Many investors today are equity and debt agnostic; they also invest globally and are open to a wide range of opportunities. We try to be poised to recognise the best parts of the debt market to invest into and be ready to take those opportunities to our investors, particularly in situation where banks are a little risk-off and there is a shortage of capital in certain areas.”
Chen Davison: Is diversification everything, or is there a need for specialists?
Huepfl: “In the UK in the last decade the opening of the debt market to non-bank lenders means there is more diversification by risk appetite; a lot more specialists are able to find different ways of providing debt to suit the structure of their capital and risk appetite. That has happened very efficiently in the UK, led straight after the financial crisis by the first wave of US insurance companies coming into the the UK market and bringing a slightly different approach, and followed by many other types of investors – all of whom have brought fresh perspectives.”
Read Real Estate Capital’s full article here.