VIDEO: Twin Brook on direct lending in a challenging economic environment

Twin Brook’s Trevor Clark discusses how macroeconomic issues have impacted lender and borrower behaviour, and what that means when it comes to lender differentiation moving forward.

This video is sponsored by Twin Brook Capital Partners

Pre-pandemic, lenders and borrowers alike had long been operating in a relatively benign credit market. Today, the world is a very different place. With a range of macroeconomic issues at play – from inflation and rising interest rates to supply chain challenges – behaviours and perspectives have changed, says Trevor Clark, founder and managing partner at Twin Brook Capital Partners.

In an environment where M&A activity has slowed and companies – facing a variety of macro headwinds – are experiencing cashflow constraints, the focus on financing structures and lender protections has come to the forefront. However, the impact of this change and these macro pressures varies across lenders and market segments, says Clark.

Watch the full interview for Clark’s views on how the current economic environment has impacted lender behaviours across the direct lending landscape, the value of financial covenants and what factors will drive lender differentiation moving forward.