Private Credit Insights by Chris Wright and Chris Wang – March 2024

Attractive yields and conservative structures can create a compelling vintage in private credit

Private credit, and direct lending in particular, will continue to deliver tangible value to both investors and borrowers. Today, investors have benefited from the higher returns, consistent cash flows and steady income distributions that private credit can provide while seeking to deliver lower volatility. At the same time, borrowers have appreciated the partnership that a private credit manager can provide with certainty of execution and no direct market risk for the borrower due to the committed capital and contractual commitments that underlie such financings. These factors increasingly make private credit borrowers’ lender of choice.

Chris Wright, Head of Private Markets, and Chris Wang, Managing Director in Credit Solutions, discuss why experience matters and how economic stress and higher interest rates will differentiate true credit investors from mere asset gatherers.

Read the full commentary here.