Demand for private credit allows lenders to regain control

After a difficult period over the last 12 months, the latest forecasts from Preqin suggest that the private debt market is once again picking up pace and is set to reach global AUM of $2.53trn by 2027. With this in mind, Paolo Malaguti, Head of Credit-Vision, Alter Domus’ credit portfolio monitoring platform, discussed the outlook for private debt managers with IPE Magazine.

The supply and demand dynamics in private debt have changed: after several years of borrowers being able to negotiate what could be seen as overly-favourable conditions, the tide is turning towards the lender. Capital is available, but lenders are now able to demand more stringent covenant packages and higher yields.

What does this mean for the asset class in terms of risk-return and how can new and established managers ensure they take full advantage of the opportunities?

See Paolo’s thoughts and read the full article here. Subscription required.