European Debt Funds Scour Portfolios for Exposure to Coronavirus
- Mid-sized firms’ supply chains vulnerable to China disruption
- Ares, Pemberton among funds reviewing their investments
Medical staff at work at a laboratory to analyse samples on the possible coronavirus in Marseille on Feb. 26.
Photographer: Gerard Julien/AFP via Getty Images
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Private credit managers with billions of euros of loans to mid-sized European companies are bracing for damage to their portfolios from disruption caused by the coronavirus.
Pemberton Asset Management SA, Kartesia Advisor LLP and Ares Management LLC are among private debt funds combing through their investments looking for exposure to markets where the virus is impacting the economy. Some are already assuming a scenario of worsening earnings and drawing up plans to limit damage to companies on their books.