Private Credit volatility creates an opening for broadly syndicated loans
Date
1 min read
The private credit market has experienced a volatile start to the year. Private credit managers entered the year optimistic that M&A activity would return and dealmaking conditions would become more constructive. Instead, they have faced a rapid increase in redemption requests at retail-focused private credit funds, continued competition from the broadly syndicated loan (BSL) market and renewed expectations of interest-rate increases, rather than a much-anticipated easing
cycle.
DC Advisory’s US Private Capital Markets team, in partnership with LevFin Insights, part of CreditSights, examines the key developments shaping the market, including:
- Retail outflows are putting pressure on private credit pricing and market sentiment
- Higher private credit costs are driving borrowers back to the BSL market
- Elevated interest rates and subdued LBO activity continue to challenge private credit growth
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All deal references and quantitative data have been sourced from LevFin Insights, a CreditSights company.
Unless otherwise indicated, all data referenced in this article is from LevFin Insights and Covenant Review. Covenant Review is a sister publication of LevFin Insights, and tracks the strength of protective covenants in private credit agreements. All deal references and quantitative data have been sourced from the LevFin Insights database.
DC Advisory has prepared this material solely for informational purposes and it is not a research report. This material does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of any offer to buy, or any recommendation with respect to, any securities. For other important information, please read our Insights & publications disclaimer >
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