Private credit’s ‘winner-take-all environment’

As more firms entered private credit in the decade post-global financial crisis, a stratification of managers left the top tier with capital aplenty and the brightest talent, says Madison Capital Funding’s senior leadership team.

This article was sponsored by Madison Capital Funding.

The demise of banks providing capital to mid-market businesses spelled the rise of private credit managers, but it also had another consequence: the increased importance of hold sizes in transactions.

As a result, upper mid-market lenders have displaced the syndicated market and fewer lower mid-market lenders are needed to participate in a transaction.

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