Andy Thomson
What defines the Stateside private credit market in 2019? Our recently published US report identified the following themes.
Infrastructure debt has become an intensely competitive area of the alternative credit market with banks and insurance companies crowding into the space.
Following the prior departures of Doug Ostrover and Tripp Smith, fellow GSO Capital Partners co-founder Bennett Goodman has announced he will be stepping back but staying involved.
A protracted cycle and fierce competition mean investors in private debt need to try and escape the crowds.
The EBITDA addback has become one of the most controversial aspects of deal documentation. Research shows lenders are resisting the most extreme examples.
Investors seeking refuge from the wild swings of the stock market may find that diversification brings unexpected challenges.
Private debt funds’ share of buyout market financing has continued to climb, although they are likely to hit the ceiling eventually.
In 2012, debt finance for the German leveraged buyout market was completely bank dominated. Seven years on, debt funds have attained a majority market share.
The period was dominated by distressed funds, with Lone Star demonstrating its pulling power with two of the biggest vehicles.
Reasons for longer-term vehicles in private debt are growing, with one being the requirement to support businesses traditionally backed by banks.