Private Credit Cashing In | Milken Institute Global Conference 2024

As higher interest rates and the threat of increased capital reserve requirements add to the cost of lending for traditional banks, private debt has filled the gap, growing almost 250 percent in the last five years. For every leveraged buyout financed by broadly syndicated bank loans, there are four financed by private credit. While the cost of capital remains high for both borrowers and lenders, and young investment teams acclimate to unfamiliar territory, creative deal structures have reemerged to bolster access to capital. While refinancing debt, direct lenders and private equity sponsors have increased equity capital injections, and as dry powder to support existing portfolio companies has disappeared, deal teams have increasingly used payment-in-kind financing structures. The opportunity set is widening for investors and lenders. So, where do our seasoned panelists see the market headed? How can retail investors gain access to the exciting world of private credit? Importantly, what can we do to keep capital accessible and ensure continued growth?
Moderator
Liz Hoffman
Business and Finance Editor, Semafor
Speakers
Dianna Carr-Coletta
Managing Director, Direct Lending, PGIM Private Capital
David Geenberg
Co-Head, North American Investment Team, Strategic Value Partners
Theodore L. Koenig
Chairman and CEO, Monroe Capital LLC
Danielle Poli
Managing Director and Assistant Portfolio Manager, Global Credit, Oaktree Capital Management, L.P.
James Reynolds
Global Head, Direct Lending, Goldman Sachs Asset Management Intl
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[@adtiamzon3663]

Interesting conversation. 👏👏🤫

[@leonie563]

Ban the lot of the Private Credit LLCs etc and let them sit in their assets so they are carrying that loss. Not 401k's or superannuation funds!

[@dentaltechtalk6445]

Is that a generalized anti-capitalism statement or are you speaking to a specific situation? To my knowledge 401K and pension funds voluntarily enter these products.