By Simone Westerhuis, managing director at LGB Investments

With the pandemic rendering conventional equity-bond portfolios unfit to generate stable yields, investors are increasingly turning to private debt funds – vehicles which lend to businesses that may find it challenging to access bank loans and other traditional forms of finance – to secure consistent returns.

The Coronavirus Business Interruption Loans (CBILs), Bounce Back Loans, tax deferrals and numerous grants have prevented a systematic default but have changed the lending landscape. More generally, with QE lowering bond yields and companies cut...