Guest Writer

Asset-based lending and asset-backed lending can be easily confused but represent contrasting lending activities. Richard Gumbrecht of Secured Finance Network explains the differences.

The enforceability of default interest clauses has long been a critical issue for lenders and investors in the private debt market. Donna Newman and Peter Sequeira of Stephenson Harwood examine the lessons from Houssein v London Credit.

The spotlight should be on due diligence as recent company failures raise questions about the scale of problems facing private debt, writes Matthias Kirchgaessner.

Independent enforcement is a superior alternative to M&A and workout processes, maintains Dagmar Gold of Deutsche Pfandverwertung.

Lenders in Europe are attracted to the diversification and enhanced risk-adjusted returns that lower mid-market sponsorless deals can provide, writes Aymen Mahmoud of McDermott Will & Schulte.

By appealing to retail and large institutional investors, mega-managers may end up with the lion’s share of capital, with implications for themselves and their investors, writes Cambridge Associates’ Andrea Auerbach.

With GP-led deals taking centre stage amid a subdued M&A market and LP thirst for liquidity, private credit secondaries have a big role to play in the asset class’s future. By Daniel Roddick of Ely Place Partners.

As private credit becomes systemically important, legal considerations must keep pace with the asset class’s growth.

‘Bad boy’ guarantees offer lenders protection from unscrupulous sponsor behaviour, but definition and enforcement may present challenges, writes Stephenson Harwood's Daniel Andrews.

The industry's biggest challenge is to widen access to private credit for both investors and borrowers, writes Jackson Square’s Timothy Alexander.