Portfolio Finance Gains Ground as Investors Seek Yield, Flexibility and Liquidity

Matt Hansford, Head of Europe, Portfolio Finance, Barings in the IPEM TV Studio at IPEM Global 2026 in Paris

Key takeaways from this interview

01. Investors are turning to portfolio finance for yield and diversification
Tight public investment-grade spreads are pushing investors to seek private-market credit with attractive spread pickup; portfolio finance can also help them diversify and improve the quality of their exposure.

02. The manager’s capabilities matter
Portfolio finance can support capital efficiency and deployment, but managers need strong origination and access structures to deliver a steady flow of high-quality deals

03. It’s a flexible range of solutions, not one product
Solutions can span from highly rated fixed income to preferred equity, allowing managers to tailor or blend investments to meet investors’ risk-return needs and help GPs address strategic challenges.

"Portfolio finance, it isn’t one product. It stretches across the whole private credit spectrum." - Matt Hansford, Barings

04. It can support liquidity and alignment without selling assets
GPs may use portfolio finance to help LPs participate in new opportunities or free up capital for fund commitments; LPs can also seek liquidity while retaining existing positions and GP relationships.