Private Debt: Past, Present & Future
Streaming Income - A Podcast from Barings
Private Credit Managers and Banks in the Private Market
There are now, you know, multi-billion dollar tranches that would have been historically the bread and butter of a broadly syndicated loan market. You're seeing more and more of those get placed in the private markets. The banks certainly, they have other ways to make money with higher capital ratios put on them. But I do think as they continue to retreat, if you will, from underwriting those big transactions we'll see some competition over time.
In the first episode of our new Investing Together series, Mercer's Global Head of Private Debt, David Scopelliti joins Barings' David Mihalick to discuss the evolution of private credit, including how this market developed, what conditions are like today, and where we go next.
Episode Segments:
(02:00) – David’s career path and role at Mercer
(05:23) – How private debt markets have evolved over 30+ years
(07:59) – The “five P’s” of manager selection
(10:23) – Achieving diversification in private credit
(12:15) – The art and science of valuations in private markets
(16:54) – How to think about liquidity and fund structure
(19:31) – How much private credit can grow from here
(22:13) – Private credit in North America, Europe, and Asia-Pacific
(27:39) – The interplay between private debt managers and banks
(31:18) – The outlook for private debt markets
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