Alternative Credit Investor’s Post

HPS talking to BlackRock about possible sale #business #finance #fintech #investment #investors #aci #alternativecreditinvestor #BlacRock #HPS https://lnkd.in/eEJqMc3Z

Whether you are running your own business or looking to finance the purchase of an income generating asset 🏢, understanding the types of funding available and the optimal capital structure can be the difference between winners and losers. ↳ Too much debt at the wrong point in the interest rate cycle could be a major credit risk and put strain on cash flows. ↳ Too much equity could result in a higher cost of capital than what would be optimal and lower growth/return on equity. ↳ Hybrid/mezz has a role to play particularly where founders have limited funds of their own but want to avoid the possibility of diluting their shareholding. Getting the mix right can accelerate growth and increase returns. Getting the mix wrong can be detrimental. https://lnkd.in/dcmpc7QS

🌐 Executive Insight: Why Medium to Large Companies Should Leverage Private Credit Funds in a High-Interest, High-Inflation Economy 💼📈 Amidst soaring interest rates and persistent inflation, medium to large companies are in a unique position to capitalize on the burgeoning market of private credit funds. Goldman Sachs' recent record-setting $21 billion fundraise for private credit illustrates a significant shift in investment strategies, one that company executives should note. Here’s why corporate leaders should pay attention to private credit funds: 1. Access to Capital: In today's economic landscape, securing traditional financing can be challenging. Private credit offers alternative funding sources that can be more flexible and accessible than conventional bank loans, especially for growth initiatives and acquisitions. 2. Customizable Financing Solutions: Private credit funds specialize in crafting bespoke financing solutions that align with corporate strategies and cash flow needs. This is particularly valuable for companies undergoing transformation or pursuing strategic shifts. 3. Strategic Partnerships: Engaging with private credit funds isn't just about capital; it's about strategic relationships. These funds often bring sector expertise and can act as financial partners in navigating market complexities. 4. Diversification of Funding Sources: By diversifying their capital structure beyond traditional bank loans and public markets, companies can enhance their financial stability and reduce dependency on any single source of funding. 5. Speed and Efficiency: When time-sensitive opportunities arise, private credit funds can often provide quicker financing decisions compared to traditional banks, giving companies a competitive edge in fast-moving markets. 6. Long-term Investment Horizon: Many private credit funds have a longer-term investment outlook, which can be advantageous for companies planning significant long-term projects or transitions. Private credit funds represent not just a financial resource but a strategic tool that can help propel companies forward in uncertain times. As executives, embracing this alternative could mean the difference between stagnation and growth. I invite fellow executives and industry leaders to weigh in: How do you view the role of private credit in your corporate financing strategy? #CorporateFinance #PrivateCredit #BusinessGrowth #ExecutiveLeadership #InvestmentStrategy #GoldmanSachs #EconomicTrends

Goldman Sachs: Investors are under-allocated to private credit #business #finance #fintech #investment #investors #aci #alternativecreditinvestor #GoldmanSachs #privatecredit https://lnkd.in/eMAMBkwu

Private credit gathers pace among sovereign wealth funds: A global survey notes private credit is becoming a widely adopted strategy among these institutional investors, who are seeking exposure through both strategic partnerships and building out internal teams. https://bit.ly/3WD1Lp9

When it comes to predicting future shifts in the fund finance market, you not only need to consider internal activity such as the response to regulation and consolidation, but also broader changes such as demands around ESG and the impact of technological advancements. Tracking developments in these key areas will enable fund managers to keep ahead of the game. Read the full article here: https://lnkd.in/eFsaErPv With thanks to our contributors, Charles Bischoff, Andy Roberts, Stewart Hotston, Rahel Haque, Parin Avari and Michael Dowds. #FundFinance #MergersAndAcquisitions #ESG #DigitalInnovation

Private Credit Gold Rush : every major private-asset manager is pushing into the private-wealth business, estimated to be an almost $180 trillion market. Apollo estimates the institutional market, which has more traditionally been the major investor for private assets, to be a roughly $100 trillion market. You can see just by the dollars why this is such a big opportunity : how to ETF-ize private credit and private equity” Apollo has been building out a trading desk for investment-grade private loans. By making the private markets more liquid, they’re also essentially creating a vehicle in which regulators can become more comfortable with such a move : Apollo is selling about $1 billion worth of products a month to wealthy individuals : added roughly 200 people working in wealth over the past three years alone : BlackRock ‘One-Stop Portfolio’ “In a world where private markets are growing by $1 trillion or more every year, many financial advisers still find it too difficult to help their clients participate” “We aim to crack that”

When it comes to predicting future shifts in the fund finance market, you not only need to consider internal activity such as the response to regulation and consolidation, but also broader changes such as demands around ESG and the impact of technological advancements. Tracking developments in these key areas will enable fund managers to keep ahead of the game. Read the full article here: https://lnkd.in/eMVYYFXK With thanks to our contributors, Charles Bischoff, Andy Roberts, Stewart Hotston, Rahel Haque, Parin Avari and Michael Dowds. #FundFinance #MergersAndAcquisitions #ESG #DigitalInnovation

BlackRock is currently exploring the acquisition of HPS Investment Partners, LLC, a major player in the private credit market. This potential deal could value HPS at over $10 billion. The acquisition would significantly bolster BlackRock’s position in the private credit sector, an area they have been keen to expand in. HPS, founded by Scott Kapnick, Scot French, and Mike Patterson, manages substantial assets in both private and public credit. The firm has seen considerable growth since its buyout from J.P. Morgan in 2016. Other potential suitors for HPS include CVC Capital Partners and Abu Dhabi-based asset manager Lunate. This move reflects the increasing interest and competition in the private credit market, which has been growing rapidly in recent years. https://lnkd.in/dQ3amDUv

JANUS HENDERSON EXPANDS PRIVATE CREDIT FOOTPRINT WITH STAKE IN $6BN BOUTIQUE 5 KEY TAKEAWAYS: 1. Janus Henderson has acquired a 55% stake in Victory Park Capital Advisors, a $6bn alternative investments firm, as part of its strategy to expand into private credit. 2. The deal, which includes cash and company stock, aligns with Janus Henderson’s broader goal to diversify and meet the growing demand for private credit investment opportunities. 3. This acquisition follows Janus Henderson's recent agreement to purchase the alternative investments arm of the National Bank of Kuwait, highlighting a trend among asset managers to expand their private credit offerings. 4. Janus Henderson’s CEO, Ali Dibadj, emphasized the importance of asset-backed lending in private credit, reflecting clients' increasing interest in diversifying their investment portfolios. 5. The acquisition is part of a larger industry trend where traditional asset managers acquire specialized firms to leverage their distribution networks and scale alternative investment strategies. #VICTORYPARK #PRIVATECREDIT #TRADEFINANCE #ABL