Navigating the pandemic has highlighted the value of strong relationships and the importance of experience when it comes to underwriting and portfolio management, say Twin Brook Capital Partners’ Drew Guyette, Tim Schifer and Tony Maggiore, who joined Private Debt Investor to discuss some of their takeaways from the past 18 months and expectations for the future.
Credit funds proved to be supportive partners to sponsors during the pandemic, and their ability to offer creative solutions is paying off as the economy recovers, say Kfir Abutbul, Bill Brady, Yousuf Dhamee and Jennifer Yount, partners at Paul Hastings.
Understanding just how private debt has matured as an asset class demonstrates why lower mid-market managers belong in any allocation, argues Tom Quimby, managing partner with Tree Line Capital Partners.
With covid-19 causing complex disruption to the world of commerce, private equity sponsors, portfolio companies and lenders can work together to deal with financial covenant breaches encountered as a result of operating in such unprecedented times.
Prior to the pandemic, it was commonly believed that a crisis would allow a reset of deal documentation in which the balance of power would shift from borrower to lender. So far, there’s little sign of it.