As credit risks increase, dry powder accumulates and the demand for transparency rises, it is crucial for private credit firms to adapt their due diligence processes and portfolio monitoring methods to stay competitive and optimize performance.
With a downturn looming, the private credit market is prepared to face a real test. Dean D’Angelo, a partner at Stellus Capital Management, explains how private credit managers can navigate challenging market conditions and continue to produce strong recovery rates.
Driven by consolidation and regulation in the banking sector, rising private equity activity, demand from mid-size enterprises and investors seeking alternatives to low-yielding public debt instruments, direct lenders have enjoyed strong growth since the global financial crisis. Symon Drake-Brockman uses the findings of the European Direct Lending – Review and Outlook Report by Saïd Business School, Oxford University, published in February 2021, and his own perspective to explain why these tailwinds are likely to persist.
According to a new survey of 112 private credit industry professionals conducted by Katten in February, 91% of investors and 80% of lenders expect deal flow to increase this year and are optimistic about several deal categories and sectors.
Onex Corporation acquired Falcon Investment Advisors, a U.S. private credit manager. The combined platform will merge Falcon’s specialized private credit investing with the investment and origination capabilities of Onex Credit and the broader Onex franchise.