This article is sponsored by Twin Brook Capital Partners
At the outset of the pandemic, some questioned private debt’s ability to weather the storm relative to other asset classes, though the past two-plus years have put those doubts to rest.
“When you look at how the asset class in general has held up through the pandemic, I think the expectation was [that] private debt, versus other asset classes, might feel a bigger impact. It didn’t happen,” says Twin Brook Capital Partners founder and managing partner Trevor Clark. “In fact, in many respects, it held up stronger than many other fixed income asset classes.”
That said, Clark notes that not all managers are the same, with firms’ respective strategies and approaches impacting outcomes. Working through this period shined a light on the importance of consistency and has driven a shift in market shares, with borrowers and investors alike increasingly turning to the scaled, reliable, experienced players in the space, he says.
Watch the full interview for Clark’s perspective on the pandemic’s impact on private debt, the current state of the market, and his expectations for the asset class going forward.