Covid-19 has turned the dynamics in acquisition finance markets upside down. As private debt has taken a larger share of the leveraged finance market during the last decade, direct lenders have increasingly filled the gap left as the banks have retrenched due to increasing capital costs and a more conservative risk appetite. The current environment presents opportunities, not least the provision of fresh capital to fund economic recovery. But with opportunity comes risk, and the current crisis might test the direct lender market in the same way the banking system was tested in the years following the global financial crisis.
Peter Brown, Head of Private Debt – Luxembourg, recently joined a roundtable discussion hosted by Real Deals to discuss the changes in the market and how lenders and borrowers are reacting.
Find out what some of the industry’s leading GPs, lenders and advisors had to say on the topic by downloading the write up here.
To listen to the audio of the roundtable, please click here.