Calls for more data transparency in private credit
Petra Funds’ head of credit has called for better standardisation and transparency of data across the private credit sector, as more and more investors pile into the space.
The fund administration firm has seen rapid growth since its launch two and a half years ago, with more than 70 GPs now using its services. At the time of writing, Petra supported over £220bn of assets under administration, and demand for its services is growing.
However, Adam J. Weiss, managing director and head of credit at Petra Funds, says that the growth of the private sector space is leading to more calls for data transparency among newer investors.
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“Getting standardisation across the whole spectrum of what private credit has become is really important,” he says. “And it all starts with data.”
Weiss believes that service providers such as Petra can play a key role in the evolution of the sector by allowing fund managers to outsource back office jobs so that they can focus on fundraising and investing in deals. This also creates an opportunity for third party data collation which could be a useful tool for new and existing investors.
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Petra specialises in fund administration, but it has shown itself to be a nimble organisation which can respond quickly to the changing needs of its clients. For instance, the firm recently rolled out an outsourced CFO function, in response to client requests.
“We service multibillion dollar managers on private equity and credit,” explains Weiss.
“It’s really just about understanding what the manager needs. We don’t have many engagements where we would just be a stand-alone compliance or manager management company.
“When we have the data and the accounting numbers, then it makes sense to have complementary services. But fund administration is the main offering that we provide.
“We look at what client requests come in, and then we ensure we have the right people and processes to support.”
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In 2022, Petra Funds was spun out of Riverstone Holdings, a $40bn (£31.15bn) private equity and credit investment platform. Weiss was the chief operating officer on the credit side of that business, before moving over to Petra. From the very start, the company was focused on providing a high level of service to its GP clientele, by offering a “white glove, high touch approach based on teams of people who had years of experience in the industry,” Weiss says.
“We’re only two-and-a-half years old, so we’re still a relatively new company,” says Weiss. “But we plan on continuing this growth trajectory.
“We’ve increased in headcount materially in the past few years. We’ve increased in clients. We just hired a chief talent officer within the last few months. We’re really trying to institutionalise our processes.
“But we still see a massive opportunity for growth. There’s technology we’re bringing on, especially within our private credit division, and we want to support all products in the market.”
As Petra builds out its technology offering and onboards more clients, it could be in a good position to advocate for more data standardisation across the industry and shine a light on the emerging trends in the private credit sector, at a time when investors are hungry for information.
