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Even at this stage in the cycle, industry experts say conditions in the US private debt market are just right for LPs seeking to fill that sweet spot in their portfolio.

Capital inflows and new entrants to the market have made investing conditions tougher, but Brent Humphries, president at AB Private Credit Investors – the direct lending platform of global asset manager AllianceBernstein – says opportunities can still be found.

In a competitive US private debt market, maintaining discipline can be a challenge. The head of capital markets at Twin Brook Capital Partners explains the value of being selective.

Economic momentum and profit growth remain strong, and Antares remains bullish about its portfolio, senior managing director and co-head of sponsor coverage Tim Lyne said.

With the deal market for private equity-backed companies red hot, alternative lenders should maintain their discipline and work with those sponsors backing the portfolio companies, Twin Brook Capital Partners partner Grant Haggard said.

Divergences in risk retention and loan market size can mean making heads and tails of CLOs on both sides of the Atlantic is tough. Andrew Bellis, managing director in Partners Group’s Americas private debt division, compares the two markets.

CLOs offer attractive alternatives for investors looking to gain exposure to mid-market debt. David Heilbrunn, Churchill Asset Management’s head of product development and capital raising, and Shai Vichness, the company’s chief financial officer, give us their insights.

Not all special situations strategies are focused on distressed investing. Managing directors Aaron Peck and Cesar Gueikian, co-portfolio managers of Monroe Capital’s Opportunistic Private Credit strategies, highlight how opportunistic private credit differs from more traditional distressed strategies

Finding less efficient niches in a congested market is becoming a challenge for many fund managers. Structured credit offers attractive opportunities in underfished waters, explain Alcentra’s Hiram Hamilton and Cathy Bevan.

Special situations offer many advantages over traditional distressed or turnaround debt, but success requires a bespoke approach, explains Emmanuel Bonnaud, managing partner with Capzanine Special Situations.