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Business of Private Credit: Safety, Not Size
Even the best credit managers have loans that go bad. What separates them from everyone else is how they bring history and experience to working those problems out.
Riding the Wave
Momentum, more often than conviction, drives the biggest deals.
Concentrated Effort
Tech deals favored upper end of market, especially in 2021 when software valuations peaked. Source: KBRA DLD Research
Well Prompted
The best managers know which prompts to write, and which answers to act on. Source: FTI Consulting
Weathering the Storm
Service-oriented companies typically hold up through any forecast. Source: Cliffwater Direct Lending Index.
Lessons Learned
Experience is a tough teacher, but the best managers pass the test. Source: Cliffwater Direct Lending Index.
More than meets the eye
The sectors you pick determine everything that follows. Source: Cliffwater Direct Lending Index
Closer Than You Think
Turns out, the marks agree more often than not. Source: KBRA
The Clear Choice
Transparency and track records matter most to private credit investors. Source: Coalition Greenwich, Private Credit Market Structure Survey
Success, Not Overnight
Private credit’s growth story, over a decade old, is still evolving. Source: Preqin.
Open for Business
When public credit markets close, private credit absorbs the shock. Source: FT, Hinze, Rintamaki, Mondini, Steffen.
Setting Expectations
Despite the headlines, direct lending makes up a much smaller share of household and business debt than mortgages did at…
The Bigger Picture
Software became less of a sector and more of a defining strategy — particularly among larger funds. Source: BDC collateral
Value Proposition
Despite the noise, ~89% of the KBRA universe is currently marked above 95 — a sign of valuation and credit…
At Any Rate
Default metrics aren’t created equal. How a default is defined and measured can tell very different stories — so knowing…
Queue Here
Investor education is becoming critical as quarterly redemption limits are being tested. Source: Data is derived from publicly available information,…