Mid-Market

Michael Arougheti, Ares’ CEO, views subprime lender collapses as ‘idiosyncratic and isolated’, not signifying a turn in the credit cycle.

Lower mid-market direct lending provides investors with exposure to parts of the real economy that are underrepresented in public markets and at an earlier stage of value creation, say Apogem Capital’s Josh Niedner and Rob Douglass.

A dislocation between soaring equity markets and economic fundamentals could yet prevent buyers and sellers coming together on price, says Bain Capital’s global head of private credit Michael Ewald.

Private debt in Australia benefits from strong structural growth drivers, says Simon La Greca, head of private debt at QIC.

Duncan Browne, head of investor relations at Kartesia, explains the strategic importance of having a strong local presence in Europe.

Lenders in Europe are attracted to the diversification and enhanced risk-adjusted returns that lower mid-market sponsorless deals can provide, writes Aymen Mahmoud of McDermott Will & Schulte.

Attendees of this year’s event predict that asset-backed finance, artificial intelligence, the mid-market and secondaries will continue to capture LPs’ imagination.

Mid-market direct lending, asset-backed finance and even commercial real estate continue to generate attractive opportunities despite widespread macro volatility, says Chris Hedberg, AllianceBernstein’s head of capital formation for pr­ivate alternatives.

As the private credit investor universe continues to expand, there are myriad opportunities on offer for managers that can handle its increasing complexity, says Nuveen’s chief executive officer Bill Huffman.

‘Private Credit+’ is a $45trn opportunity globally. Direct lending, $1.5trn of that amount, is saturated, the report says.