MGG: Why higher rates lead to more non-sponsored opportunities

These are the best lending conditions for years, say Gregory Racz, president and co-founder, and Daniel Leger, managing director of MGG Investment Group

This article is sponsored by MGG Investment Group

Gregory Racz, MGG
Gregory Racz

Is what is happening to US regional banks good or bad for private credit? And for non-sponsor lenders in particular?

What happened this spring is a continuation of a 40-year consolidation cycle driven by bank failures and regulation. The recent failures just exacerbate the absence of bank lending for mid-market businesses, and most expect small and mid-sized banks in the US to get further regulated.

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