As our Quote of the Week concisely frames it, the world is changing from one where risk-taking was rewarded, to one where it is punished if not appropriately managed. The question for private credit investors is, can you be rewarded while managing today’s level of greater risk? In a nutshell, the Fed’s withdrawal of systemic capital and…

In a world where cash is either being withdrawn systemically through quantitative tightening or selectively by investor caution, capital formation is being challenged. Public capital utilization is governed by fast cash, so when money flows out of retail funds at the pace it has, it’s a headwind to deal activity. Private capital has long-term, locked-up…

Supply chain issues aren’t limited to bikes and baby formula. As the Fed withdraws liquidity from the banking system and investor cash exits public credit, it’s more challenging to deliver capital to traditional buyouts and M&A. In pivoting from a world of abundance to one of scarcity, credit markets are struggling to adjust. Direct lenders…

Our keynote address at this week’s SuperReturn US Private Credit conference allowed us to share a reconsideration of the impact of rate hikes and quantitative tightening on capital markets and private credit. This special series will further develop that thesis. For over a decade, including through Covid, the tide of capital has flowed mostly in…