Staff Writer
Fundraising growth slows for the largest real estate debt managers – but their success outweighs the rest.
Europe is playing catch-up compared with the US when it comes to attracting private wealth. James Board and Owen Lysak, partners at Simpson Thacher & Bartlett, chart the progress that has been made.
Private equity sponsors have the confidence to step back into the market after a sluggish 2023, say Bridgepoint Credit’s Paul Johnson and Andrew Cleland-Bogle.
Yields from private debt are currently at decade highs, potentially making this a very attractive vintage for the asset class, says Bill Sacher, partner and head of private credit at Adams Street Partners.
With low levels of leverage, enhanced structural protections and limited competition, the European lower mid-market is the place to be, say Apera Asset Management partners Klaus Petersen and David Wilmot.
The lower mid-market offers distinct advantages in all kinds of macroeconomic weather, say NXT Capital co-heads Ted Denniston and Joe Lazewski.
The testing market makes this the ideal time to assess which managers have the most resilient portfolios, says MV Credit’s Frédéric Nadal.
The big challenge facing smaller companies is the ongoing reduction in bank lending and the lack of viable alternatives, says Theo Dickens, managing partner at Prefequity.
Lenders to sponsors face declining odds and a rise in creditor-on-creditor violence, says Greg Racz, president and co-founder, and Daniel Leger, managing director at MGG Investment Group.
Demetry Zilberg, chief technology officer at Alter Domus, considers the latest developments in artificial intelligence and how private debt can benefit.