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Private Credit: Competitive Refinancing Pressure Muted in the Lower Middle Market
Private credit (direct lending) has increasingly captured a larger share of the loan market in recent years, partly by refinancing borrowers from the broadly syndicated loan market. While the broadly syndicated loan market regained some ground in Q1 2024, private credit lenders countered by reducing pricing in Q2 to defend…
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Private Credit: 2024 Demand Outlook
The Federal Reserve began raising interest rates in March 2022 and continued at the fastest pace in decades. This sharp increase dampened origination activity into the first half of 2023 before picking up in Q3 2023. We expect more robust origination volume from refinancings and M&A in 2024, which benefits…
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Prospect Capital Management is Named a Top Private Debt Firm
Prospect Capital Management L.P. (“Prospect”) announced today that GrowthCap has named Prospect a Top Private Debt Firm of 2023. “Thank you to GrowthCap for recognizing our longstanding approach and dedication” said John Barry, CEO of Prospect. He added, “We are proud of our long history of providing important capital to…
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Private Credit: Investing in a Higher Rate Environment
While slower economic growth and higher interest rates have dampened M&A deal activity, private credit investors can stand to benefit in the current higher-for-longer interest rate environment. Prospect believes this current rate environment provides an opportune time for allocators to consider investing in private credit. Higher Interest Rates May Benefit…
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Private Credit vs. Syndicated Leveraged Loans
Private credit and syndicated leveraged loans are distinct financial arrangements. Understanding the difference between the two is key for prudent investors and borrowers alike. Private Credit Syndicated Leveraged Loans Privately Originated Often Rarely Privately Negotiated Often Rarely Floating Rate Often Often Senior Secured Often Often Financial Maintenance Covenants Often Rarely…
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Private Credit Myths: Bigger is Better
In the wake of an unprecedented economic cycle, we have noticed an uptick in conversation regarding middle-market loans. Specifically, investors have expressed concern that the middle and lower middle-market segments of private credit are riskier than other segments. Historical data reveals a compelling narrative. Contrary to popular belief, core middle-market…
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Prospect Capital Management Wins Best Real Estate Investor USA
Prospect Capital Management L.P. (“Prospect”) announced today that Capital Finance International (“CFI”) has named Prospect the Best Real Estate Investor USA. The award recognizes organizations that contribute significantly to the convergence of economies and add value for all stakeholders. CFI has awarded Best Real Estate Investor USA to Prospect based…
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Prospect Capital Management Wins Best Middle-Market Lending Investor USA
Prospect Capital Management L.P. (“Prospect”) announced today that Capital Finance International (“CFI”) has named Prospect the Best Middle-Market Lending Investor USA. The award recognizes organizations that contribute significantly to the convergence of economies and add value for all stakeholders. CFI has awarded Best Middle-Market Lending Investor USA to Prospect based…
