Mid-Market

With predictions of a choppy period ahead in the macro environment, direct lenders in the mid-market stand to benefit if they remain reliable partners to borrowers and PE sponsors, says Trevor Clark, founder and managing partner at Twin Brook Capital Partners.

Including leverage, the direct lending fund focused on sponsored companies exceeds its target.

Software lending continues to provide an attractive opportunity for direct lenders, but today’s market requires extra attention on deal selection, says Frank Cupido of Tree Line Capital Partners.

The opportunity set for private credit appears to be becoming more favourable, despite the challenges of inflation, tight labour markets and rising interest rates, say Adams Street Partners’ Bill Sacher, Fred Chung and Justin Lawrence.

Tom Stein, head of private debt Americas, and Chris Bone, head of private debt Europe, at Partners Group discuss the opportunities and challenges facing direct lenders in Europe and the US.

Over a period of volatility, resilient sectors of the economy such as technology and healthcare are proving their worth, says Paul Johnson, partner and head of direct lending at Bridgepoint Credit.

After a record-breaking 2021, the managers that performed well through covid are in good shape to deal with challenges on the horizon for 2022, say Churchill Asset Management’s Jason Strife and Randy Schwimmer.

The events of the past two years have raised awareness about the importance of a disciplined approach and strong balance sheets, so despite the ongoing pandemic and concerns about certain macroeconomic issues, many direct lenders and middle market companies have headed into 2022 in good shape, says Drew Guyette, chief credit officer and senior partner at Twin Brook Capital Partners.