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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
It had been a while since our last MENA visit, so on a recent trip there with our teams, clients and friends, the difference in levels of activity and interest around private credit was palpable. Most large sophisticated institutional investors in the Gulf, including sovereign wealth and pension funds, now have a dedicated allocation to […]
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 proponents and beneficiaries of private capital have long recognized its virtue of being less correlated with headline risk than fixed income and public equities. But one of Covid’s most enduring financial legacies was the higher interest rate regime imposed by the Fed in 2022. While it appears their long-sought soft landing was achieved, more […]
As we’ve noted, the banks and private credit managers occupy different places in the corporate finance ecosystem. That’s not to say, of course, that large corporate financings don’t represent real investment opportunities for the right buyers. Or that the expansion and evolution of private capital won’t lead to interesting and constructive solutions for a wide […]