RC Capital’s Post

Challenge: It’s the so-called “golden age” of private credit (fundraising) in the US/Europe…but (with investing) selectivity in credit selection is more critical today than ever before with (1) over-levered corporate balance sheets (almost 60% deals north of 5x, lots of maturities coming the next 2 years), (2) over-levered banks (commercial real estate eating up reg capital/ratios) and (3) over-levered US government with national debt >$34Tn & crossing 100% Debt-to-GDP… Considerations: (A) being high selectivity when building concentration (no one says they aren’t !!) and (B) diversification with a priority for cash flow (1) via geographic diversification like in Latin America, giving higher yield/spread in USD at 1.5-2x lower leverage with larger (generally more resilient) corporates (Juan Luis Rivera) (2) diversification via pooling of cash flows e.g. securitization for greater overall resiliency…including CFOs & structured solutions… Great to be discussing it all with intelligent, thoughtful GPs & LPs and market players from PIMCO to AlpInvest to Evercore to Thrivent and also seeing old friends! Chris Freeze, Freddie H. Lou, Andie Goh, Pramit Sheth !!

Will continuation vehicles eat funds for breakfast? As continuation vehicles increase in size and the market becomes ever more liquid for the highest quality assets, and sponsors, a natural question is: what does this trend mean for alternatives? This will divide opinion, but a very robust CV market presents risk for LPs only investing in closed-ended, blind pool funds. GPs will increasingly be able to take their best assets out of funds and hold them for longer in single asset structures, while slower-burn portfolio companies stay put in traditional funds. Over time, GPs will increasingly look like conglomerates. How long until we see a mid-market US or European GP with 2/3 of its capital represented by 3-5 large continuation vehicles? For LPs however, there's an opportunity to build a portfolio of high quality, large direct positions, accessed through existing fund relationships, with very low blind pool risk. It may well be that funds become efficient origination vehicles for both GPs and LPs to identify the best assets that they want to hold for 5+ years outside of traditional fund structures. #privateequity #secondaries #continuationvehicles #alternatives #emergingmanagers

🌟 Our top fund picks of the month are in! 📊✨ Dive into the details of our standout performers and see what makes them shine. Read more in the latest #SygniaSygnals. https://shorturl.at/ijoRY #SygniaFunds #InvestSmart

Virtus Is a Barron’s Best Fund Family, ranking strongly across the 1-, 5-, and 10-year periods. Learn more about our high-conviction, actively managed funds which contributed to this accolade. https://ow.ly/CMUF50QWUxO #mutualfunds #activemanagement #investing

🌟 Our top fund picks of the month are in! 📊✨⁠ Dive into the details of our standout performers and see what makes them shine.⁠ Read more in the latest #SygniaSygnals - shorturl.at/bjKV5 #SygniaFunds #InvestSmart

Just a few weeks (and spots) left until our Capital Links event! March 15-17 in Jacksonville, Florida, at the PLAYERS CHAMPIONSHIP. This format is the most concentrated and effective way for high-quality growth companies to gain exposure to our exclusive US investor network in a short timeframe. Are you joining us? RSVP to barrington@grovecorp.ca #CapitalMarkets #Investing #YCOB

🌟 Our top fund picks of the month are in! 📊✨⁠ Dive into the details of our standout performers and see what makes them shine.⁠ Read more in the latest #SygniaSygnals - https://shorturl.at/yszam #SygniaFunds #InvestSmart

🚀 Our top fund picks of the month have arrived! 📈✨️ Dive into the details of our standout performers and see what makes them shine.⁠ Read more in the latest #SygniaSygnals - https://shorturl.at/LAvwb #SygniaFunds #InvestSmart

🌟 Our top fund picks of the month are in! 📊✨⁠ ⁠ Dive into the details of our standout performers and see what makes them shine. Read more in the latest #SygniaSygnals.⁠ https://lnkd.in/eA8Zj8UX #SygniaFunds #InvestSmart