Looking For Yield In All The Wrong Places

June 16, 2020 “I would never buy debt at below zero.  Never, not at below zero…not in my entire life. I would do anything before I’d buy debt at negative rates.” – Jamie Dimon, Address to Institute of International Finance, October 2019 Over the last several years, we have recognized what has been going on with negative or near negative …

Where Does Private Credit Go From Here ? – (Part Two)

June 3, 2020 “Be fearful when others are greedy and be greedy when others are fearful.” – Warren Buffett, Annual letter to Berkshire Hathaway Investors What now? Leon Black might be the patron saint of private lenders. As analysts have scrambled to assess the damage wrought by months of lockdowns across the world, the leader of the world’s largest private …

Where Does Private Credit Go From Here ? – (Part One)

May 26, 2020 What now? “Since Apollo was founded in 1990, we have been through four downturns and 40 per cent of all our money has been invested in down cycles, when everyone else shut down.” – Leon Black, Founder of Apollo Global Management Leon Black might be the patron saint of private lenders. As analysts have scrambled to assess …

Finding Risk Adjusted Income

April 23, 2020 In uncertain times, plans are worthless: Experience is what counts Everyone’s got a plan until they’re punched in the face. In 2020, the plan was to enjoy a return to relative growth and stability. Goldman Sachs predicted global GDP growth of 3.4%, driven by more favorable financial conditions, improved US-China trade relations and reduced uncertainty surrounding Brexit. …

Direct Lenders Mull Concessions to Borrowers in First Major Test

March 30, 2020 Direct lenders around the world are talking with borrowers about easing interest payments, waiving penalties and relaxing covenants as they assess the growing damage to their portfolios caused by the coronavirus pandemic. The discussions are occurring as the global turmoil seeps into the $812 billion private market. The crisis is one of the first major tests for the asset …

The Need for Private Credit

January 20, 2020 “56% of global respondents plan to increase their allocations to private credit.” – BlackRock 2019 Global Institutional Survey The fact that over half of the institutional investors in BlackRock’s survey said that they were rebalancing their assets towards private credit should come as little surprise: figures provided by Deloitte show that, if it continues on its current …

Who Needs a Bank? Why Direct Lending Is Surging

What’s direct lending? Old-fashioned bank lending — without the bank. As tougher regulations reshaped the post-financial crisis landscape, traditional banks have cut back on business lending. That’s created a raft of opportunities: For a growing group of asset managers who are making the loans; for borrowers, including not only mid-sized companies but some big enough to tap the syndicated debt markets if they wanted; …

Opinion: Lenders come in all forms, so make the right choice

For small or medium-sized businesses, finding timely operating capital to keep the business moving forward can be extremely challenging. It is imperative for companies to understand that every lender or source of capital has a different cost, return expectation, level of underwriting and timing to close. As they say, you need to “know your audience.” Traditional banks are always a …

Private Credit Funds Stabilize Markets, Research Shows

Certain private credit and debt funds can help stabilize the financial markets and promote economic resilience in times when banks are unable to loan money, new research finds.  The rise of private debt funds following the 2008 recession has prompted some concern among regulators. But a paper published on February 13 and entitled “Nonbank Credit” finds that private credit funds …

JB Capital launches merchant banking fund

JB Capital, a provider of financing solutions to middle-market companies and small corporate borrowers, is seeking to raise at least $100 million for its merchant banking fund. JB Capital will target mid-term investments, focusing on one to three-year terms. PRESS RELEASE Bellevue, WA—March 12, 2019 – JB Capital L.L.C. (JB Capital) today announces the launch of its Merchant Banking Fund, seeking to raise …