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The migration of private wealth

Taking fright at the vicissitudes of the public market and cognisant of the possibility of tougher times ahead, high-net-worth investors are increasing their exposure to private debt.

GPs with shallow pockets need deeper resources

The direct lending market has many young management groups battling to try to achieve scale. Until they do, it’s tough to meet growing LP demands for operational strength.

Future of private debt: Will it replace high yield?

Global fixed-income investors are poised for a revolution in credit. Plus, concerns about ‘leverage on leverage’ and changing dynamics in China.

Why LPs are on their guard

It’s a time to be alive to questionable claims as well as the requirements of a changing market, according to investors at the PDI New York Forum.

A 5.5x EBITDA loan? Sure, you can call it senior secured

Unitranche has found favour post-GFC as a result of its simplicity. But investors should make sure not to ignore it goes much deeper in the capital structure than traditional first lien senior secured debt.

The changing focus of European private debt

A recent roundtable revealed managers have new strategic priorities and different sources of capital to target.

Permanent capital can increase access to private debt

In our September magazine’s Deep Dive, investment professionals stressed the benefits of permanent capital. One overlooked advantage is making the asset class more accessible.

Why the US may have reached a peak

What defines the Stateside private credit market in 2019? Our recently published US report identified the following themes.

The main thing is: be different

A protracted cycle and fierce competition mean investors in private debt need to try and escape the crowds.

If the cap fits, wear it: The addback fightback

The EBITDA addback has become one of the most controversial aspects of deal documentation. Research shows lenders are resisting the most extreme examples.

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