Fund Management

A high-velocity vaccine rollout, $1.9trn stimulus package and a year of pent-up consumerism mean the future is bright for US mid-market direct lending, says Churchill Asset Management’s Randy Schwimmer.

Panellists at our Investor Day predicted a bright future for the asset class, but there was a word of warning for US managers to up their game on ESG.

The alternatives giant had said in January it would focus more effort on governance and reputational risk.

With covid-19 causing complex disruption to the world of commerce, private equity sponsors, portfolio companies and lenders can work together to deal with financial covenant breaches encountered as a result of operating in such unprecedented times.

Changes brought about by the pandemic have encouraged investors to rethink their relationship with private debt, with tailored solutions a high priority.

Lenders are rethinking due diligence after a private equity manager was arrested on charges that he forged LP commitments.

The ease with which capital could leak out of businesses was symbolic of borrower power in deal negotiations. A more challenging environment has put this in a harsher spotlight.