Now that the liquid loan market is opening, albeit with mostly refinancings, larger issuers have more choices. This is actually a good and natural thing. For those companies willing to go through the ratings and syndication processes in the bank market, terms can be competitive. Financing choices now include leading private credit managers who offer […]
We want to highlight issues demonstrating almost willful ignorance of the role private credit plays in today’s asset management world. We understand the temptation of attention-grabbing headlines. But they do a disservice to investors exploring alternatives in a world that’s punished the usual options. Getting them accurate information on private credit would be a great […]
The battle for buyouts is over: privates have won. Private credit fundraising has changed that narrative for good. Increasingly, leading private credit managers with capacity to speak comfortably for $1 billion or more are committing to financings with the ability to hold the entire loan among controlled funds… (Any “forward-looking” information may include, among other […]
In the same way, we think, private credit has grown from a back-water of middle market lending in the 1980’s to beachfront in the fastest growing element of the capital markets. We would suggest private credit is “The regulatory fix that became an asset class.” Over the next few weeks, we’ll examine these and other […]
We saw that confidence further underlined as the economy emerged intact from the global pandemic. And supported as well by the patience shown by financial markets as central banks pursued their aggressive battle against inflation. The reward has so far been the softest of landings, a possibility dismissed by many economists not long ago. Add […]
As we discussed last week, the maturity walls don’t sit still either. They act like sand waves marching towards the beach, propelled by the tidal forces of refinanced loans. What looks like imposing cliffs, eventually smooth out over time, eroded by the steady flow of capital into leveraged lending. We predict that the dynamics driving […]
As rates climbed, repricings slowed. 2023’s volume jumped to $81.3 billion from only $10 billion the year before – a far cry from 2021’s $240 billion, per PitchBook. Today less than 10% of all leveraged loans represent net new issuance, the lowest level since the GFC. Overall refinancings – amendments, extensions, acquisitions – were the […]
In the absence of fully functioning public markets during the Fed’s intense anti-inflation campaign, liquidity was drained, not just from the economy but from bank reserves, trading desks, CLO formation and retail fund flows. Top middle market arrangers have built powerful one-stop platforms, allowing private equity sponsors to select from a wide range of sophisticated […]
“Flight to quality” was a key theme for investors in 2023 given overall market uncertainty. Prioritizing high quality assets should always be a focus, irrespective of economic conditions. In 2024, if overall market M&A volume picks back up as expected, we believe that these winners should be very well-positioned for sustained growth… (Any “forward-looking” information […]
As we navigate slowing economic growth, volatility, and geopolitical shocks, it is even more critical to identify the attributes of winners and losers. Embracing scale, cultivating diverse capabilities, leading with true sourcing advantages, exercising valuation discipline, and maintaining conservative and flexible balance sheet structures – will prove to be a brighter path for success in […]