Andalusian Credit Partners

Is college football beating the big leagues? While still technically amateur, college football is proving to be a ratings powerhouse. This past weekend, two big match-ups pulled in record-breaking viewership: 📊 Georgia vs. Texas: 12.9M average viewers, peaking at 14.1M 📊 Alabama vs. Tennessee: 10.7M average viewers, peaking at 14.7M For the first time in almost 30 years, a single network aired two games on the same day exceeding 10M viewers - surpassing the viewership of the 2024 NBA Finals, 2024 Stanley Cup Finals, and the 2023 World Series. These figures highlight the ever-growing appetite for college football, already the most attended sport in the United States. As viewership increases and broadcasting deals are negotiated, more schools are expected to see a boost in revenue. In 2023, nine athletic programs generated over $200M in revenue, up from five programs the year before. We believe this trend is likely to create a more competitive environment, prompting college athletic departments to seek both new revenue streams to expand capital and ways to recruit top talent, particularly with the anticipated growth of Name, Image, and Likeness (“NIL”) deals. NIL deals are estimated to be a $1.7B market, primarily funded (about 80%) by collectives established by boosters and alumni. Demand for talent and revenue will go hand in hand; as the need for elite talent rises, so will the demand for additional capital sources. It will be interesting to see how investment opportunities materialize as institutions and conferences realign to maximize revenue while continuing to provide competitive offerings for top recruits. At Andalusian, we feel uniquely positioned within the Sports, Media & Entertainment ecosystem and see opportunities for unique investment as the collegiate sporting landscape evolves. #investmentopportunities #collegefootball #NIL #sportsbusiness

This month marks the return of the National Basketball Association (NBA) and the National Hockey League (NHL), which should bring excitement to not only fans but investors, too.   The continued expansion of the sports ecosystem presents a growing number of investment opportunities across the value chain. That said, it is critical for investors to understand where the sports industry is heading and to determine where they want to play on this dynamic, multi-dimensional playing field.   In the below white paper, Andalusian Credit Partners covers the fundamentals for individuals and institutions who want to create a winning investment strategy.   #PrivateCredit #PrivateDebt #DirectLending #Sports #NIL

Over the weekend, the New York Jets and Minnesota Vikings faced off in London as the National Football League (NFL) held its second international game of the season. This followed the league’s first ever game in South America last month, which drew an estimated 45,000 fans in São Paolo, Brazil, and dozens of successful games in prior years across the U.K., Canada, Mexico, and Germany.   We believe the NFL’s rise abroad can be attributed to several key factors:   1. Grassroots efforts and youth development programs: The NFL has been actively investing in grassroots efforts and youth development programs to grow the sport globally. This includes flag football tournaments, youth clinics, and partnerships with local organizations to introduce the sport to new audiences.   2. Regular season games in international markets: As mentioned, the NFL has been hosting regular season games in international markets since the early 2000s. These games have helped expose the sport to new fans and build local fanbases for NFL teams.   3. Increasing media coverage and accessibility: With more games being broadcast internationally and increased media coverage, American football is becoming more accessible to fans around the world. Streaming services and social media have also made it easier for international audiences to follow the sport.   4. Competitive parity and entertainment value: The NFL's competitive parity, with any team capable of winning on any given Sunday, makes the league exciting to follow. The action-packed nature of the game also translates well to international audiences looking for an entertaining spectacle.   5. Alignment with local sports cultures: In some markets, American football is finding alignment with local sports cultures. For example, in Germany, a survey showed that after soccer, American football is the second most popular sport. The NFL is leveraging these cultural connections to grow its fanbase.   6. Economic benefits for host cities: Hosting NFL games provides an economic boost for international cities. This economic impact helps drive interest from local governments and organizations to host NFL events.   We anticipate that these enduring trends will only continue to accelerate the growth of American football internationally and, ultimately, further reinforce the global investment opportunity that exists around sports. In other words, the NFL’s international series is a win for fans and investors alike.   #Investing #Sports #NFL #PrivateCredit #PrivateDebt

Excited to welcome transitioning veteran John Maher! 7 years Army Special Operations - 75th Ranger Regiment MBA Candidate, Columbia May ‘25 John is joining us as an intern from 51 Vets, a non-profit that helps elite military veterans transition to roles in the private sector. We are excited to support John in his next chapter and be a part of the incredible work at 51 Vets. === Andalusian Credit Partners Non-bank lender of choice in Sports, Media & Entertainment, and Financial & Specialty Services #privatecredit #mergersacquisitionsdiverstitures #creditmanagement #privateequity #veterans

Yesterday, the Federal Reserve System implemented a 50 basis point reduction to the federal funds rate, a long anticipated decision that will have a widespread impact on investors, borrowers, and the overall economy. In a letter from the office of the Former Vice Chairman of the Federal Reserve and Executive Chairman of Andalusian Credit Partners, Roger W. Ferguson, Jr. discusses the economic and geopolitical events that led to the Fed’s pivot, what to expect from the Fed and U.S. economy moving forward, and why lower interest rates should create a favorable environment for middle market companies and private credit. Read the full letter below. #FederalReserve #MonetaryPolicy #InterestRates #PrivateCredit

Andalusian Credit Partners looks forward to participating in today’s Private Debt Investor New York Forum at the New York Hilton Midtown. Join Chief Executive Officer and Chief Investment Officer Aaron Kless and other industry leaders at 2:10pm ET for an engaging panel discussion regarding the benefits of investing in specialized private credit funds that focus on niche transactions, the relative value of sponsored vs. non-sponsored loans, and more. Please reach out to Kimberly Smith if you are interested in connecting at the event. To register and learn more, visit: https://lnkd.in/gUNJgz7. #PrivateCredit #PrivateDebt #MiddleMarket #DirectLending #PDI

Last week, we partnered with BTG Pactual to co-host an event in São Paulo, Brazil focused on uncovering macro trends and opportunities in the private credit market. Jeffrey Kaplan, our Founding Partner, kicked off the session with an overview of the global economic landscape. André Esteves, Chairman of BTG Pactual, then joined our Executive Chairman, Roger W. Ferguson, Jr., to discuss the future of inflation and interest rate forecasts. We then wrapped up the morning with Aaron Kless, CEO and CIO, and Gerrity Lansing, Partner at BTG Pactual, sharing their expert views on the future of the US private credit market. Key Macroeconomic Takeaways from Roger and André: - U.S. Federal Reserve Policy: The Fed requires clear communication to prevent market volatility, presenting a stable approach to interest rates. - U.S Election Implications: China-U.S. relations could be impacted, emphasizing the importance of adjusting economic strategies accordingly. - Geopolitical Shifts: The rise of non-state actors is impacting global stability and altering traditional state functions. - China’s Economic Deceleration: China's economic slowdown is under scrutiny for its structural versus cyclical nature, with fundamental weaknesses and significant challenges highlighted. - Japan’s Economic Normalization: Despite rising interest rates and inflation, Japan’s robust manufacturing and tech sectors are crucial for regional stability, though demographic issues remain a concern. - Europe’s Economic Struggles: Europe needs enhanced unity and innovation to tackle socioeconomic disparities and income inequality. Key Private Credit Takeaways from Aaron and Gerrity: - Attractive Risk-Adjusted Returns: Skilled and nimble managers with a specialized sector focus can provide diversified private credit exposure. - Appeal of Middle Market Direct Lending: Favorable competitive dynamics are attractive for measured, near-term capital deployment. - “Higher for Longer” Rate Environment: Regardless of potential short-term cuts, interest rates may stay elevated for an extended period, signaling a shift from the low-rate, low-inflation macroeconomic environment that investors have been accustomed to. A huge thank you to BTG for hosting us over the last several days! --- Andalusian Credit Partners is a U.S. middle market direct lending platform focused on diversified senior secured leveraged lending to non-sponsored and sponsor-backed companies. ACP provides first lien and unitranche loans to businesses across various industries, including sports, media & entertainment, financial services, tech-enabled business services, healthcare, industrials, consumer products & services, and select natural resources-linked opportunities, among others. #BTGPactual #privatecredit #privateequity

Second quarter earnings reports from business development companies (BDCs) have underscored a few key trends. Although headwinds remain for some managers and borrowers, we believe there is reason for optimism. 1. Resilient Core Middle Market: While results were mixed across BDCs, managers benefitted from the relative stability and strong fundamentals of businesses in the core middle market. This segment, characterized by lower leverage and stronger financial covenants, continues to show resilient performance, even amidst elevated interest rates. 2. Discipline is Paramount: To be sure, cracks in the market are beginning to crystallize. Annualized recurring revenue (ARR) loans are under pressure due to high debt levels and low earnings among once fast-growing companies. Paid-in-kind (PIK) interest is increasing among BDCs seeking to ease the payment burden on certain borrowers. And loose credit agreements are coming home to roost, diverting cash flows and collateral away from some managers. It is critical that managers remain disciplined around the types of loans they make, their documentation, and how they manage investments over time. 3. Encouraging Outlook: Economic data has largely been positive, and the Fed is on track to cut interest rates as soon as next month. This should deliver relief to stressed borrowers and increase the appetite for debt among others. BDCs are positioning themselves to capitalize on an environment of increased M&A and financing activity that is expected to come. At Andalusian Credit Partners, we believe that these market dynamics present an attractive and enduring opportunity. By taking a disciplined approach to building a new portfolio of core middle market borrowers across advantaged sectors of the economy, we believe we can successfully preserve capital and deliver long-term value and growth to investors and borrowers alike. #MiddleMarket #PrivateCredit #PrivateDebt #DirectLending #BDC

At the Jackson Hole Economic Policy Symposium on Friday, Federal Reserve Chair Jerome Powell all but confirmed that the Fed will lower the benchmark federal funds rate next month. What does this portend for the economy, corporate borrowers and the private credit market?   While recent unemployment data has created some cause for concern, the economy remains generally healthy, inflation continues to trend in the right direction, and corporate balance sheets and fundamentals are largely strong. With a reduction in rates, companies that have been struggling with higher interest burden should be able to begin to breathe a sigh of relief, and others that were awaiting decreased borrowing costs to pursue financing activities may now be looking for debt solutions.    When coupling these positive underlying conditions with a still non-zero yield curve, where lenders are getting paid for the risk they are taking, we believe it is an ideal time to deploy capital into tightly structured loans in the core middle market.   We, like the rest of the market, eagerly await September’s FOMC meeting.   #Fed #FederalReserve #MonetaryPolicy #InterestRates #PrivateCredit

Investing in sports is on the rise, with abundant opportunities to lend to businesses of all sizes in and around the industry. Aaron Kless, Chief Executive Officer and Chief Investment Officer of Andalusian Credit Partners, recently spoke with Peter Benson and Anna Russi of 9fin regarding the types of businesses with which we seek to partner and the resources and expertise needed to effectively transact in the sports sector. “Not only do we like the long-term secular trends around professional sports, but also collegiate and amateur sports, including youth and club sports,” said Kless. Read the full story here: https://lnkd.in/eNhidMjp. #PrivateCredit #PrivateDebt #DirectLending #MiddleMarket #Sports