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Who better to talk to about the most pressing challenges and greatest opportunities facing private debt than some of the asset class’s most prominent supporters? We ask leading investors for their insights into today’s market.
Rising rates have caused a resurgence in the popularity of junior capital.
High barriers to entry and a strong share of growing markets are among the borrower characteristics that instil confidence for lenders, according to Paul Johnson and Andrew Cleland-Bogle of Bridgepoint Credit.
Private debt fund managers are examining their options as investors ponder whether steep interest rate rises have made hurdle rates too easy to achieve, says Macfarlanes' Margarida Ferreira.
Investing in larger companies has many advantages, especially in these more challenging times, say Blackstone’s Brad Marshall and Jonathan Bock.
Some have labelled this a ‘golden age’ for private debt, but fund managers would do well to avoid complacency. Here are five threats to those in the industry.
Infrastructure debt isn’t immune from the turmoil in the wider market, but it does offer protection for investors.
Protected from inflation and benefiting from rate rises, infrastructure debt looks extremely well placed, says Damien Gardes, co-head of infrastructure debt at Schroders Capital.
Payment in kind is an option which, due to interest rate rises, is increasingly in demand from sponsors and borrowers. Lenders must make sure they are applied only in appropriate circumstances, say Daniel Hendon and Phil Anscombe of Proskauer Rose.
Rising rates are putting companies under pressure, but predicting widespread distressed activity continues to be a brave bet.