Special Opportunities – funds investing in distressed, stressed and/or mispriced situations, typically but not solely via the secondary market.

Junior Credit – funds investing predominately in junior or specialist debt with varying levels of equity exposure. These funds are typically investing via the primary market. In days gone by, they may have called themselves mezzanine funds.

Direct Lending - funds investing in senior secured loans principally via the primary markets.

Notwithstanding these variations in strategy, the structural considerations for these types of closed ended credit fund are similar.

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This article was first published in the AIMA Journal (Edition 108 Oct - Dec).