Bloomberg Talks FS Investment Solutions Chief Market Strategist Troy Gayeski Talks Private Equity Markets In The New Year
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Dec 26, 2024 Troy Gayeski, the Chief Market Strategist at FS Investments, shares his keen insights on the private equity market and its evolving dynamics. He discusses the resurgence of lending activity due to banks' retreat from leveraged lending, revealing new opportunities for alternative managers. Gayeski offers a cautiously optimistic outlook for deal-making amid political transitions and regulatory shifts. He emphasizes the importance of strategic investments, underscoring potential growth in private equity despite challenges in fixed income returns.
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Private Credit Strategy
- Private credit offers a solution for fixed-income investors seeking better returns.
- It focuses on creative financing, like asset-based lending, for high-quality companies.
Rise of Private Credit
- Regulatory reforms like Sarbanes-Oxley and Basel 3 drove banks away from leveraged lending.
- This created opportunities for alternative managers in private credit.
Post-Election Dealmaking
- Post-election optimism exists for dealmaking, despite political transition.
- Multiple compression in private equity and strong U.S. GDP growth create opportunities.