Capital markets fintech Globacap targets private credit

Globacap, a private markets technology firm, is looking to expand into the private credit space this year.

The fintech’s clients currently include venture capital fund managers, private equity fund managers and commodities investment managers.

“We’re planning to target the private credit space this year,” said Myles Milston (pictured), co-founder and chief executive of Globacap.

“We’re looking at all closed-end fund managers in alternatives.”

Read more: Abrdn lays out case for diversifying into alts

Milston highlighted the rapid growth of private markets and the huge opportunities they present.

“Private markets are accelerating at a more rapid pace than public markets, at a growth rate of 1.7 to one,” he told Alternative Credit Investor.

 “Large investors like pension funds and insurers currently have an average holding of eight per cent of their assets in private markets and the remaining 92 per cent in public markets. But if you look at the number of investable assets in private markets versus public markets, public markets present just 0.1 per cent of available assets.

Read more: Private credit set for largest target allocation growth among alternatives

 “However, investors’ approaches are changing, particularly in the UK and EU where there are mandates to allocate more to private markets.

 “If we saw that 92 per cent public markets allocation come down to 75 per cent, that would be an additional $25tn (£19.7tn) that would move into private markets.”

Globacap offers a range of services to fund managers including investor onboarding and automated workflow processes.

Read more: Goldman Sachs: Pension funds eye private credit in 2024

Milston said that the changing demographic of investors in private markets increases the need for third-party services.

“Historically, fund managers would access new capital from large investors such as pension funds,” he said.“However, while those pension funds still invest in private markets, alternative investment managers now also seek capital from a wider channel of investors which can include family offices and high-net-worth individuals. If there are even 50 smaller investors coming into the fund, it presents a high operating and cost burden to the GP.”