We were captivated by this report as it provides readers with an insightful introduction to Private Credit and its promising growth potential. Private credit has experienced remarkable growth since the Global Financial Crisis, expanding over 6 times to reach $1.2 trillion. Given the diverse range of strategies available, selecting the right manager is crucial.
When evaluating managers, consider factors such as borrower/asset focus (whether they lend to mid-market or specialized assets), capital structure expertise (senior to distressed strategies), cycle experience (their ability to weather downturns), deal terms/protections (whether they negotiate strong lender protections), distressed capabilities (their aptitude for maximizing recoveries when needed), and track record (their returns over time compared to benchmarks). Managers who possess expertise across various assets, capital structures, cycles, and situations, along with a strong performance history, stand out.