Direct lenders split into believers and realists as redemptions breach caps, European stress surfaces, and asset-backed finance emerges as the exit strategy
Direct Lending is being forecasted to hit a down cycle and quite frankly I think no one knows what is really going to happen and therefore the mixed signals.
It is largely speculation with retail investors leading the march. Apollo has been great in catching the software trend early some have not.
( which I find quite surprising as to why have some of the largest managers been over weight in Software!!)
Reporting on default rates ranges from 15-2% while investments in forward looking software firms continue.
My sense is that direct lending will get impacted but for specific sectors and vintages. But if the underwriting is reformed keeping in the current shifts in macro and AI there is still a chance that there might be minimal damage going forward.
Thanks for the weekly update!! Much appreciated.
Direct Lending is being forecasted to hit a down cycle and quite frankly I think no one knows what is really going to happen and therefore the mixed signals.
It is largely speculation with retail investors leading the march. Apollo has been great in catching the software trend early some have not.
( which I find quite surprising as to why have some of the largest managers been over weight in Software!!)
Reporting on default rates ranges from 15-2% while investments in forward looking software firms continue.
My sense is that direct lending will get impacted but for specific sectors and vintages. But if the underwriting is reformed keeping in the current shifts in macro and AI there is still a chance that there might be minimal damage going forward.
Probably nothing will happen
Meanwhile Arougheti and Richards can’t have a difference of opinion without destroying credibility. Much like this article
“Conviction or desperation”