The private credit industry has enjoyed massive growth over the last few years, and most managers will admit that boom was fed by factors well outside their control, including accelerated recognition by both institutional and retail investor channels to the attractiveness of the space. This increased capital base had the incremental benefit of the syndicated markets seizing up for a spell. Now that the broadly syndicated market is showing signs of life, there are questions about what this means for private credit going forward.
Ted Denniston and Joe Lazewski, the co-heads of NXT Capital, a subsidiary of ORIX USA, argue that the lower mid-market can be far less susceptible to the slings and arrows of the macroeconomic environment, and offers more opportunities and protections than larger transactions.
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