April 2019 issue

    Less harmony, more precision – the appeal to Europe’s rule-makers

    Further pan-regional regulation of non-bank lending is unnecessary, a new white paper argues. It’s time to look at the smaller picture within individual member states.

    State of the market

    Private credit has come a long way in a short space of time. But how are increasing fund sizes, more flexible terms and the prospect of a more difficult economic environment shaping the way managers are approaching the market?

    The double-figure return that rivals private equity

    Comparing long-term performance finds that private debt holdings can generate superior returns to both fixed income and equity.

    European deals to look out for in 2019

    With record amounts of capital to deploy, managers are eyeing opportunities on the continent. We examine some of the potential areas of focus and how the market differs across the Atlantic.

    Strong returns and niche offerings keep private debt on the radar

    While leveraged loans and the upper mid-market possess worrying features, there remain compelling opportunities off the beaten path, finds Andrew Hedlund

    European private credit converges with the US…to a degree

    The region's direct lending market has grown over recent years, but the structures that prevail retain a distinctive character when compared with the US.

    How direct lending’s growth is changing returns

    Jess Larsen of FIRSTavenue charts the evolution from ‘idiosyncratic alpha’ to cost-efficient beta, and the impact this is having on fees

    Diagnosis of the healthcare sector

    Richard Zall and Gary Creem, partners with Proskauer, explain why healthcare has become one of the major areas of focus for private debt investors.

    Why investors may be living in ignorance

    Terminology around senior loans has become increasingly obscure. Consequently, there are calls for it to be standardised, finds David Turner

    How funds’ increasing firepower has transformed the European market

    Amid record levels of fundraising and an evolving deal market, Proskauer partners Alex Griffith, Faisal Ramzan and Ben Davis examine how private debt's role is shifting on the continent.

    No covenant worries here

    More attractive deal terms and the ability to be highly selective are among the reasons why investors are increasingly tempted to diversify into the smaller end of the market, maintains Jaime Prieto of Kartesia

    Redrawing the lines for direct lending

    Lenders are pushing back against overly generous deal terms, but it is easier said than done, and there are various pressure points for deal makers.

    A lender’s view of a heated market

    Monroe Capital’s Ted Koenig outlines the catalysts that will keep the deal and credit markets humming in 2019

    Pushing back on deal terms

    With abundant liquidity, deal terms have been loosening in both the US and Europe. Stephen Boyko and Faisal Ramzan look at the sectors and geographies holding promise for lenders amid this atmosphere.

    Asian investors spot anomalies in leveraged lending

    Buyers are demanding higher-rated tranches in response to what they see as a lack of liquidity in the leveraged loan markets.

    Technology: the great enabler

    Technology businesses are increasingly offering attractive opportunities to private debt investors with the right experience and specialist knowledge. We speak to Jim Miller, a partner with global alternative asset manager Ares Management.

    How the EU should seek to level the rules

    With Brexit and European elections due to be over in the coming months, legislators will be looking again at Brussels’ regulatory agenda, and private credit managers are urging them to break down barriers. By John Bakie

    Lenders eye ‘seismic shift’ in African debt

    The private credit market in Africa may be relatively small but is playing an integral role in helping to fill the capital gaps left by the continent’s banks. Rebecca Szkutak reports

    ‘It’s strange – business goes on as normal’

    Speculation is rife about the ending of the cycle and what political developments may be coming round the corner. Alex Schmid of ESO Capital is staying focused on doing deals others overlook