Direct lending is a “case in point” of Oaktree Capital Management co-chairman Howard Marks’s “seven worst words in the investment world”, according to a new memo penned by the financial luminary.
The strategy is emblematic of the words no financial firm or investor wants to hear: “too much money chasing too few deals”, of which the looser financial covenants and arguably egregious EBITDA addbacks in recent debt deals are merely a symptom.
