This video is sponsored by Twin Brook Capital Partners
With slower M&A activity and companies contending with a variety of macroeconomic headwinds, direct lenders today are increasingly focused on their existing portfolios, says Kim Trick, co-chief credit officer, head of underwriting and partner at Twin Brook Capital Partners. Against this backdrop and in the face of a prolonged rising-rate environment, the importance of diligent, proactive portfolio management has come to the forefront.
While every market cycle is different, there are typically some patterns throughout. As a result, historical experience can be invaluable when it comes to lenders’ abilities to identify and get ahead of potential issues, including those that may be arising in the current market environment.
“There are factors that are consistent and factors that are new, so it’s important to have the experience to be able to pull from the flags that you’ve seen in prior cycles and the results of those prior cycles in order to be proactive in your approach when a problem arises with an account,” Trick explains.
At Twin Brook, she notes, the senior team’s deep experience has guided many aspects of how the direct lender operates, from origination through portfolio management.
Watch the full interview for more of Trick’s views on the importance of experience, how it has informed Twin Brook’s approach, and why it will continue to be a driver of lender differentiation going forward.