Private Credit in a Post-Rate World (Last of a Series)
The notion of a post-rate world is arguable, as anyone in the capital markets over the past two decades would attest. But with so many variables in today’s crosswinds, investors in private capital believe that, as a relative matter, the direction of interest rates is less significant than how tariff policies will roll out in the coming months.
Relative performance is also critical to how those investors assess their choices among a myriad of alternatives as well as public options. With interest rates at the high end of historic levels, some specialized strategies such as litigation finance or pharma royalties may attract attention. The challenge is to attain scale of deployment and consistency of returns…
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Concentrated Effort
Tech deals favored upper end of market, especially in 2021 when software valuations peaked. Source: KBRA DLD Research