Lessons Learned from COVID-19 - FC
Global Conference 2024

Private Credit Cashing In

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As higher interest rates and the threat of increased capital reserve requirements add to the cost of lending for traditional banks, private debt has filled the gap, growing almost 250 percent in the last five years. For every leveraged buyout financed by broadly syndicated bank loans, there are four financed by private credit. While the cost of capital remains high for both borrowers and lenders, and young investment teams acclimate to unfamiliar territory, creative deal structures have reemerged to bolster access to capital. While refinancing debt, direct lenders and private equity sponsors have increased equity capital injections, and as dry powder to support existing portfolio companies has disappeared, deal teams have increasingly used payment-in-kind financing structures. The opportunity set is widening for investors and lenders. So, where do our seasoned panelists see the market headed? How can retail investors gain access to the exciting world of private credit? Importantly, what can we do to keep capital accessible and ensure continued growth? 

    Moderator

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    Liz Hoffman

    Business and Finance Editor, Semafor

    Speakers

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    Dianna Carr-Coletta

    Managing Director, Direct Lending, PGIM Private Capital
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    David Geenberg

    Co-Head, North American Investment Team, Strategic Value Partners
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    Theodore L. Koenig

    Chairman and CEO, Monroe Capital LLC
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    Danielle Poli

    Managing Director and Assistant Portfolio Manager, Global Credit, Oaktree Capital Management, L.P.
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    James Reynolds

    Global Head, Direct Lending, Goldman Sachs Asset Management Intl