When we visited friends and clients in Kuwait last November, we noted increased sophistication of institutional and sovereign wealth investors around private capital. That trend continues. As with Oman, Kuwait has a sovereign wealth fund, though significantly larger at $1 trillion, making it the fifth largest in the world. Like the OIA, the Kuwait Investment…
Our first visit to Oman last week was remarkable in several respects. We were reminded again how regional countries – whether in Europe, Asia, or MENA – can be so similar yet so different. Oman, like Saudi Arabia, Kuwait, Qatar and the UAE, is a monarchy, yet is unique in being a sultanate. It is…
During the recent PDI webinar we were asked, beyond yield, diversification, and deployment, what private credit areas are most vulnerable? What scenarios could likely create problems? These questions are excellent ones, because they allow us to tease out the differences among private capital managers, not just throw the entire asset class out with the bath…
Beyond yield, advisors and direct contribution (DC) plans look to private credit for diversification and deployment. These goals are not unrelated. Quantity over quality, particularly at the higher end of the middle market or the large cap space, can result in chunky portfolio positions. These can add significantly to risk. A default or loss in…
We recently joined several colleagues on an excellent PDI podcast – “New Era of Private Credit” – for a wide-ranging discussion of investment topics. We’ll include a link to the final published version when available but thought it would be profitable to expand on the conversation. Let’s begin with this question: “What is driving the…
Post-Labor Day market conditions continue to favor credit issuance of all stripes. Rather than being hampered by uncertainty surrounding tariffs, inflation, growth or rates, borrowers and investors have decided these dynamics have been settled in favor of “risk on!” What then are the real worries for credit? While lower rates and less chance of a…
Getting our heads back into markets, we reflect this week on the shape of public equities and fixed income. The S&P 500 has gained about 10% year-to-date, less than half of the 20% return for the comparable period in 2024. Similar figures for the DJIA are 7% and 10.5%, respectively. Ten-year Treasurys bottomed out a…
What is coming through clearly in our conversations with credit professionals is that we are in a risk-on world. Somewhat delayed from earlier in the year, thanks to tariffs, but the strength and direction is unmistakable. This sentiment was amplified in our discussions about the US leveraged loan market in Octus Webinar: H1 2025: “How…
What’s the state of the US leveraged loan market, and what’s the outlook for the rest of the year? Those were the among the questions posed to your correspondent and three other panelists at Octus Webinar: H1 2025: “How Private Credit and Banks Traversed the Tariff Storm to a Brighter Second Half.” We’ve discussed here…
Our recent survey of 164 private equity executives revealed improved confidence in both the M&A environment over the next twelve months as well as the exit activity emerging from that. Digging further, we see several interesting dynamics about their financing partners and the current strategies employed to maximize deployment and valuations. As we’ve noted in…