December 2017/ January 2018

    Month: December
    Year: 2017

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    Echoes of the crisis

    At a recent roundtable, talking points centred around market conditions and preparing for a change in circumstances.

    Why this is a fight that should be picked

    As US Congress gets ready to reform the tax code, private credit and private equity firms will square off with elected leaders over a tax deduction that is crucial to both asset classes.

    LBOs under the microscope

    On Fitch’s leveraged loan default watchlist, private equity-backed companies are well represented, but not beyond what one might expect.

    New kids on the lending block

    Speciality finance could offer private debt investors lucrative returns, but they need to be willing to roll their sleeves up.

    All roads lead to Rome – eventually

    Italy is not the easiest environment for NPL investors, but it accounts for around half of the European opportunity, writes David Turner.

    Specialty finance: Perceptive Advisors on healthcare returns

    Investing in healthcare companies using structured debt can provide broader downside protection than royalty financing, posits Sam Chawla, portfolio manager of the Perceptive Credit Opportunities strategy at Perceptive Advisors.

    Succession planning: How to fill the boss’s shoes

    Laying the groundwork for a firm’s future involves many of the same factors for both private equity and private debt groups, but credit has nuances of its own to consider.

    The arrival of the big guns

    With a pair of BDC IPOs this year, Carlyle and KKR have boosted a market that is small and relatively lacking in investment. Irwin Speizer reports.

    PennantPark’s pick and mix investment model

    Fund structures today include public and private approaches as well as blends of the two, explains Arthur Penn of PennantPark.

    TCA Capital on the benefits of breadth when investing

    Special situations, direct lending, speciality finance … business services, healthcare and energy. These investment platforms and industry specialisations don’t need to be siloed, rather they can work together, two TCP Capital executives maintain.

    Solar Capital weighs up cash flows versus asset values

    Solar Capital co-founders, Michael Gross and Bruce Spohler, say cash flow and asset-based lending can be complementary, despite offering very different strategies for investors.

    Northleaf on having everything under one roof

    When it comes to alternative assets - be it private credit, private equity, infrastructure, real estate or agricultural/timberland - an investment platform approach that combines connected strategies can be beneficial for investors, maintains Northleaf’s David Ross.

    Alaska PFC: Ahead of the curve

    Alaska Permanent Fund Corporation - a state-run investment vehicle that distributes dividends to all eligible residents - started investing in private credit before the financial crisis, and sees no reason to pull back now.

    Europe: Seven things you need to know

    The major themes emerging from this year's Europe report.

    Europe: Private debt in numbers

    The continent is commanding a larger portion of private debt fundraising activity as the asset class matures.

    Europe: The ups and downs of private debt in Germany

    A paragon of stability, Germany is increasingly attractive to private debt investors. David Turner looks at the advantages and challenges that come with pursuing private debt opportunities in the country.

    Europe: Return of the banks

    As alternative forms of finance have eaten into banks’ market share in Europe, how are the traditional lenders responding?

    Europe: Alcentra on the future growth of private debt

    Current market conditions are showing echoes of the global financial crisis. But Graeme Delaney-Smith, head of European direct lending at Alcentra, explains why, despite the pressure, the future is bright for those most adaptive to change.

    Europe: Focus on fundraising

    A deeper look at some of the trends behind the latest fundraising data from Europe-focused funds.

    Europe: BlackRock says the best is yet to come

    Three years after he took the lead of BlackRock’s European private debt platform, Stephan Caron gives his take on the region’s untapped prospects.

    Europe roundtable: Riding the bumps

    Competition is tough and deal terms are raising eyebrows. But Europe's private debt professionals are also seeing opportunity in specialisation, regulation and the growth of markets outside the besieged UK.

    Europe: PSC Eaglewood on small balance lending

    Simon Champ, investment partner at Pollen Street Capital, and CEO of PSC Eaglewood Europe speaks to PDI about the opportunities in small-balance lending, and why barriers to entry favour the brave.

    Europe: Return of the banks

    As alternative forms of finance have eaten into banks’ market share in Europe, how are the traditional lenders responding?

    Europe: MIDIS on infrastructre debt

    Kit Hamilton, managing director with Macquarie Infrastructure Debt Investment Solutions, offers insight into the rapid evolution of the strategy in Europe.

    Europe: Debt gathering pace in Southern Europe

    As European private debt has matured, southern Europe is becoming more attractive. But it still remains a focus for specialists.

    Europe: It’s not all about the UK, says Pemberton

    Amid extreme political uncertainty, having a pan-European approach is the way to avoid over-reliance on the UK claim senior executives at Pemberton.

    Europe: Kreos on growth lending

    Since its inception Kreos has evolved its specialist strategy in step with the wider European private debt market by emphasising the importance of strong sponsor relations.