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Leaders in Private Credit Roundtable — Mayer Brown and 9fin
Josie Shillito
+Chris Haffenden
•5 min read
Private credit is one of the fastest growing assets classes globally, with an estimated $1.4trn in assets under management in 2022. However, 2023 may be its first true test as it navigates its first full credit cycle through the choppy waters of high inflation, dampened risk appetite, wobbly public markets and an inverted yield curve.
On 21 March 2023, Mayer Brown and 9fin hosted a Private Credit Roundtable at Mayer Brown’s offices, moderated by Stuart Brinkworth, Mayer Brown’s European Head of Leveraged Finance, and 9fin’s Editor Chris Haffenden.
In the course of two sessions, participants discussed first the state of the market, including the effect of the base rate rise on all-in cost of debt; the re-emergence of certain covenants; the decline in leverage; the re-entry of banks; and the integration of additional products (such as payment-in-kind (PIK)) into the private credit capital structure.
During the distressed private credit panel, participants turned to current levels of distress in direct lending portfolios; the main drivers for distress; sponsor and lender (bank and fund) negotiating dynamics; workout experience; lender appetite for taking control; opportunities for new money provision; the use of formal processes; and the potential fallout from SVB and Credit Suisse.
Mayer Brown and 9fin are grateful to panellists including William Allen from Marlborough Partners; Mark Wilton from Barings; Ian Sale from HSBC, Richard Meehan from Pemberton Asset Management, James Adams from Muzinich & Co, Zelf Hussain from PwC, as well as key others, for their valuable insights.
TheLeaders in Private Credit Report can be requested here includes the following topics:
State of the Market
It’s al(most) about the credit, credit, credit
…But not on just any terms
Coverage covenants to return?
…And only if the price is right
Is Unitranche becoming too expensive?
Alternative products to bridge the gap?
New (and old) entrants into Private Credit
Dealing with distress in private
Level of distressed activity
Stakeholder discussion topics
Not all lenders are the same
Being a good actor
Trust in the experts
Credit Opportunities funds
Market testing, being crammed
Impacts of SVB and CS on lending and counterparty risk
To request a full copy of the report, please complete your details here.
