Guest Writer
A few years ago there were doubts about whether the credit secondaries market had become fully established. There seems little room for such a view these days, writes Daniel Roddick.
With markets facing a severe imbalance of supply and demand for credit, private debt funds stand to benefit if they can harness the opportunity.
This could finally be the year when stressed situations take off, but you need to be able to see them coming and take appropriate action, say McDermott Will & Emery's Mark Fine and Giulia Venanzoni
With banks once again in trouble across Europe and the US, private credit could offer a vital alternative source of funding, according to Fidelity International's Michael Curtis.
Complying with tax rules can make setting up private debt funds a complex task, but there are ways to navigate the maze.
Despite macroeconomic headwinds and the rising cost of capital, transaction activity looks set to pick up in the second half of 2023, says Sarah Roche, head of capital markets and managing director at Twin Brook Capital Partners.
The strategy is looking favourable compared with global equities and credits, says Eddie Ong, deputy chief investment officer at SeaTown Holdings International.
Stimulating dealflow is not straightforward, but fund managers have an opportunity waiting to be exploited in climate finance.
Opportunities persist for those investors able to be flexible in a changing environment. Camille McLeod-Salmon, portfolio manager in leveraged finance at Fidelity International, runs the rule over current market dynamics.
Despite the macro pressures, these are the best of times for those prepared to be selective and understand where the best deals reside, says Zach Lewy, CEO, CIO of Arrow Global.