Business Breakdowns
Episode 164 A Primer on Private Credit: Part 2
Business Breakdowns

Episode 164: A Primer on Private Credit: Part 2

Business Breakdowns

Episode 164

A Primer on Private Credit: Part 2

Josh Clarkson is the managing director at Prosek Partners. We cover the history of private credit markets, the impact of business development companies and sponsor-backed loans, and what rising rates mean for the future of the sector.

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(00:00:00) Welcome to Business Breakdowns

(00:00:52) Deep Dive into Private Credit Markets: Part Two

(00:02:17) Exploring the Competitive and Collaborative Dynamics of Banks and Private Credit Funds

(00:06:01) The Mechanics of Leverage in Private Credit Funds

(00:07:30)  The Evolution of Business Development Companies (BDCs)

(00:14:54) Sector-Specific Strategies in Private Credit

(00:20:08) Historical Context: Life Insurance Companies as Original Credit Providers

(00:20:41) BDCs Impact on Private Credit

(00:21:39) The Financial Crisis: A Turning Point for Private Credit

(00:23:49) The Role of BDCs in Today's Private Credit Landscape

(00:26:28) Differentiating Private Credit Strategies and Structures

(00:29:59) Navigating the Complex World of BDC Metrics and Valuations

(00:36:57) Adapting to Rising Rates: Strategies and Opportunities

(00:41:47) Looking Forward: Innovation and Growth in Private Credit

 

A Primer on Private Credit: Part 2

Introduction

Matt
Welcome back for part two of this Business Breakdown on the private credit markets. Again, I am now joined by Josh Clarkson, Managing Director of Prosek Partners. While our discussion with Armen was really focused on the supply and demand dynamics of private credit, where the public markets have played a role, where regulatory markets have played a role, that certainty and speed of getting deals done and how that has proved to be an advantage for private credit versus the traditional solutions.

In our conversation with Josh, we transition a bit into some broader takeaways, the history of the private credit markets, some of the wrappers and what they have meant to the private credit markets. You will often hear about BDCs, business development companies. We get into exactly how they are differentiated versus traditional solutions and even differentiation within that own subsegment, the public BDCs versus the private BDCs, what has happened in times of stress and what the fundraising environment has been like and what the market looks like in the future. Please enjoy part two of our discussion on private credit.

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