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Q4 2024 CREDIT MARKET UPDATE: The private capital landscape is evolving rapidly as we head into the new year. With the Fed easing rates and a resilient labor market holding steady, opportunities abound despite shifting economic signals. Refinancing activity is surging, and private credit markets, fueled by $385 billion in dry powder, are driving the activity. Private Credit funds are doubling down on family-and founder-led acquisitions, drawn to strong leadership and actionable growth strategies. See more in our latest update, https://bit.ly/4iYBH26 #CreditMarket #CapitalRaising

What Lower Rates Mean for Private Credit With interest rates on the decline and steady economic growth, the outlook for private credit remains strong. According to AllianceBernstein, lower borrowing costs are expected to fuel mergers, acquisitions, and demand for middle-market loans, while creating new opportunities for investors to diversify. Key takeaways: 📉 Lower rates = reduced borrowing costs 🔄 M&A and private credit activity to increase 📊 Focus on diversification and risk management is crucial As the trend of bank disintermediation continues, it’s clear that private credit investors are well-positioned to expand their portfolios. Read the full article to explore more insights on navigating this evolving landscape: https://lnkd.in/d3YrEH6g #PrivateCredit #InterestRates #Investing #MiddleMarket #Diversification #Finance

New story for Reorg w/ Katherine Schwartz all about the uptick in leveraged finance dividend deal activity. Leveraged loan and high-yield bond deals earmarked for dividend payments have been more frequent in 2024 than in years past, which market participants say will continue into next year and serve as a precursor toward more M&A and leveraged buyout deal-making activity. Many thanks to John Lloyd of Janus Henderson Investors, Kelly Burton of Barings, Daniel DeYoung of Columbia Threadneedle Investments, US, Matt Gilbert of Thoma Bravo and K. James Pirouz of Truist Securities for providing insight for our story. Read more at Reorg: https://lnkd.in/eEW2UdBa #leveragedfinance #highyieldbonds #leveragedloans #dividends

New trend piece for Reorg with Michael Haley about the recent rise of dividend deals in the leveraged finance market. Market participants say these deals are a harbinger of more M&A and LBO activity, and we'll continue to see more of them in 2025. Many thanks to John Lloyd of Janus Henderson Investors, Kelly Burton of Barings, Daniel DeYoung of Columbia Threadneedle Investments, US, Matt Gilbert of Thoma Bravo and K. James Pirouz of Truist Securities for sharing your perspectives in this story. Read more at Reorg: https://lnkd.in/eEW2UdBa #leveragedfinance #highyieldbonds #leveragedloans #dividends

There continues to be a lot of chatter as to whether or not the debt extended on leveraged buyouts is now into the “thin layers” where the deals are less good, and the space is over-invested, over-saturated, and over-loved. Very candidly, we have been abundantly diligent to ensure that we understand what we own, what is being bought, and how macro and micro risks impact clients. That being said, the notion that there is a fully mature industry called private credit which has essentially captured a bunch of market share from banks (true) and from the high-yield bond market (true) fails to capture the entirety of the universe. https://bahnsen.co/4h0YgCo

“As far as M&A, we believe there will be an increase this year. We’re starting to see trickles of that in the leveraged loan market – there’s stability in the market, and financing markets are wide open. So, if you want to acquire a company and use loans to back it, it’s available to you… We expect to be busier with M&A than we were last year.” – Lauren Basmadjian, Global Head of Liquid Credit at Carlyle Lauren joined Alix Steel and Romaine Bostick, CFA on Bloomberg to discuss the state of the leveraged loan market and the outlook for M&A activity. Carlyle, as one of the largest #CLO managers globally with over $50 billion in assets, has access to extensive lending data from over 600 US companies. Watch here: http://spr.ly/60439AFIW

With more clarity around the economy in 2024, direct middle market lending deal flow is picking up, although new buyouts levels remain muted. In the June issue of Private Debt Investor, Churchill Asset Management’s Jason Strife and Mat Linet discuss where they are seeing opportunities and green shoots in new buyouts for the remainder of the year. Read here: https://bit.ly/3xAGWSI

There continues to be a lot of chatter as to whether or not the debt extended on leveraged buyouts is now into the “thin layers” where the deals are less good, and the space is over-invested, over-saturated, and over-loved. Very candidly, we have been abundantly diligent to ensure that we understand what we own, what is being bought, and how macro and micro risks impact clients. That being said, the notion that there is a fully mature industry called private credit which has essentially captured a bunch of market share from banks (true) and from the high-yield bond market (true) fails to capture the entirety of the universe. https://bahnsen.co/4h0Yf1i

With more clarity around the economy in 2024, direct middle market lending deal flow is picking up, although new buyouts levels remain muted. In the June issue of Private Debt Investor, Churchill Asset Management’s Jason Strife and Mat Linet discuss where they are seeing opportunities and green shoots in new buyouts for the remainder of the year. Read here: https://bit.ly/4aZTiS9

There continues to be a lot of chatter as to whether or not the debt extended on leveraged buyouts is now into the “thin layers” where the deals are less good, and the space is over-invested, over-saturated, and over-loved. Very candidly, we have been abundantly diligent to ensure that we understand what we own, what is being bought, and how macro and micro risks impact clients. That being said, the notion that there is a fully mature industry called private credit which has essentially captured a bunch of market share from banks (true) and from the high-yield bond market (true) fails to capture the entirety of the universe. https://bahnsen.co/3BQkQ0d