Like any love-hate relationship, the long-time affair between banks and private credit managers is something of a paradox. If it were ever turned into a novel, it could be called (with apologies to Isaac Bashevis Singer) Enemies, A Love Story.
For years, banks and direct lenders have partnered up, with banks providing leverage to private credit managers, and managers often taking the junior position in the broadly syndicated loans (BSL) originated and distributed by banks, which controlled the top of the capital stack.
