Debtwired! Bain Capital’s Michael Ewald on private credit opportunities amid volatility
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Apr 23, 2025 
Michael Ewald, Bain Capital’s global head of private credit, shares insights from his extensive career in finance. He discusses navigating today’s turbulent credit landscape, highlighting opportunities within the middle market. Ewald elaborates on the impact of political events, particularly tariff threats, on market volatility. He also delves into the shifting dynamics of pricing and covenant protections, while addressing competition between private credit and syndicated loans. With a focus on risk management, he emphasizes the evolving strategies shaping the future of private credit investments.
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Focus on Core Middle Market
- Bain Capital focuses on the core middle market less affected by tariffs and Trump policies.
- They avoid U.S. consumer-facing businesses due to recession and tariff concerns.
Capital Deployment & International Focus
- Bain Capital still deploys capital through add-ons and opportunities in the core middle market.
- They also invest internationally with around 30% of their book in Europe and some in Australia and New Zealand.
Advantages of Core Middle Market
- The core middle market offers better risk-return with an illiquidity premium 150-200 basis points wider than upper middle market.
- Documentation quality and control over tranches protect investors more than larger deals.