Once again, we reflect on the prior year for restructuring trends impacting private credit lenders. Last year it was all about "liability management"—the latest trend in which the limits.
Once again, we reflect on the prior year for restructuring trends impacting private credit lenders. Last year it was all about “liability management” the latest trend in which the.
Stellar growth in private debt markets over the past decade looks set to face a reality check as a looming recession and higher interest rates squeeze companies earnings and their ability to service
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Private credit lenders started 2020 both with anticipation and trepidation. Activity levels were strong and default levels were at historic lows, but private credit lenders worried about the risk of economic headwinds – after all, we were then in the extra innings of the longest economic recovery on record.
At the time, we predicted the next wave of restructurings would be different because, unlike traditional lenders, private credit lenders have many more tools in the restructuring toolbox: strong relationships with sponsors, flexible capital that could be deployed in a downside scenario, the ability to operate at different levels of the capital structure, operational and financial experience, and, ultimately, the ability to own and operate a business, if necessary.
Tuesday, February 23, 2021
Private credit lenders started 2020 both with anticipation and trepidation. Activity levels were strong and default levels were at historic lows, but private credit lenders worried about the risk of economic headwinds – after all, we were then in the extra innings of the longest economic recovery on record.
At the time, we predicted the next wave of restructurings would be different because, unlike traditional lenders, private credit lenders have many more tools in the restructuring toolbox: strong relationships with sponsors, flexible capital that could be deployed in a downside scenario, the ability to operate at different levels of the capital structure, operational and financial experience, and, ultimately, the ability to own and operate a business, if necessary.