Lawyers
Global Private Credit Group Co-Chair Joe Glatt spoke with LevFin Insights about the current state of the private credit space. In “US Insight: Private debt seen as resilient despite rise in non-accruals, jobs data,” published on September 18, Joe notes that while the lower middle market may be feeling the heat, there are profitable opportunities for larger private credit managers.
“Where you’re really seeing pressure is in the more vulnerable part of the market—lower middle market borrowers,” he says. “Large private credit managers with the depth and breadth of experience to work through amendments and restructurings and all unique add-on facilities and other structures are the ones that are going to benefit.”
Joe adds that a potential rise in M&A activity could indicate a windfall for private credit managers if they play the game right.
“There’s a lot of dry powder on the sidelines waiting to be invested, and there are a lot of assets that are yet to be sold,” he says. “It requires a lot of sharp diligence and underwriting to sift through it and, again, resist the urge to chase yield. Singles and doubles win games, not just home runs.”
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