Media

Private Credit – The Final Reckoning (First of a Series)

Moviegoers know that Tom Cruise “does his own stunts.” We always assumed this mostly meant riding motorcycles fast. And even watching his Mission Impossible and Top Gun acrobatics over the years, we figured riskier sequences involved some kind of green screen technology. Until we saw practice runs for his motorcycle jump on the latest MI […]

Letter from Tokyo (Last of a Series)

Always attuned to market conditions on the ground, we heard from friends in Tokyo last week that, incredibly, grocery stores were out of rice. The impact of hot, wet weather and dealers hoarding product has sent rice prices soaring and supplies dwindling. A five-kilogram bag now costs ¥4,000, or about $28. In the US, a […]

Letter from Tokyo (Second of a Series)

Last week we came to Tokyo for meetings with our investors and friends in the region, as well as participating in S&P’s stellar Structured Finance Seminar 2025. Along with almost 200 attendees we heard senior ratings analysts and leading CLO market participants discuss trends and outlooks for global leveraged finance, CLOs and other securitized strategies. […]

Letter from Tokyo (First of a Series)

We began our visit to Tokyo this week attending S&P’s Structured Finance Seminar 2025. Along with almost 200 Japanese bankers and investors, we heard senior ratings analysts and leading CLO market participants discuss trends and outlooks for global leveraged finance, CLOs and other securitized strategies. Our panel was entitled, “Private Credit, Middle Market CLOs and […]

There’s a New Tariff in Town (Second of Two Parts)

One criticism of private credit goes something like this: “Sure, private credit has a pretty good track record. But that’s because it’s never been tested by a real recession.” The point is valid for most direct lenders. According to one study, only 5% of those managers were around before 2009. But during the past 16 […]

There’s a New Tariff in Town (First of Two Parts)

This week we look at questions from clients and friends surrounding the issue of tariffs. Not surprisingly, as we’ve discovered in our recent travels, interest in the topic has accelerated (see our Chart of the Week). The origin of the word is obscure. By one account, it derives from the Arabic “ta‘rif,” meaning “notification” or […]

Letter from Kuala Lumpur (Second of Two Parts)

APAC countries each have their own path to investing in alternatives and private capital. Most key Malaysian institutions began with private equity, venture capital, and real estate. Favored PE sectors include data centers, which in 2023 represented an astounding 90% of all privately funded deals in that arena.* Others were in the consumer, industrial, and […]

Letter from Kuala Lumpur (First of Two Parts)

Last month our travels took us to Malaysia’s capital, Kuala Lumpur, a city of about 2 million. There we met with clients and friends who are participating in the country’s move towards private credit. One indicator is the recent decision by Malaysia’s sovereign wealth fund, Khazanah Nasional (KN), to dedicate investment ringgits to medium-term enterprises […]

Letter from Down Under (Second of Two Parts)

As the Australian market has matured, it has geared a variety of private credit products to different investor types. These embrace institutions, family offices, high-net-worth, and ultra-high-net-worth individuals. And as the asset class has become more sophisticated globally, investment structures were developed to meet the diverse needs and requirements of LPs. In that regard, private […]

Letter from Down Under (First of Two Parts)

In our travels last month to Perth, Melbourne, and Sydney, we had over twenty meetings with clients and friends that included superannuation funds, wealth management firms, financial advisory and consultants, and private banks. As we discovered in other locales, private credit continues to gain in acceptance there as a valuable alternative to liquid assets, both […]