Cloud 9fin Private credit ping pong
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Feb 3, 2025 Soren Christensen, partner at Cinven with extensive experience in leveraged finance, and Amit Bahri, co-head of European Direct Lending at Goldman Sachs, dive into the evolving world of private credit. They explore the shifting dynamics between banks and private credit firms, highlighting changing borrower preferences and strategies. The duo discusses the implications of the returning BSL market, the appeal of junior PIKs, and what the next few years might hold for M&A activity and lending trends as market conditions stabilize.
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Cinven's Financing Journey
- Cinven, a private equity firm, relied heavily on banks for financing until the early 2000s.
- As deal sizes grew, they created a Capital Markets Team in 2006 and started using mezzanine financing and eventually, unitranches.
Goldman Sachs' Private Credit History
- Goldman Sachs' private credit journey started in the mid-90s with mezzanine funds in Europe.
- Later, in 2008, they launched their first senior direct lending fund.
BSL Dislocation & Private Credit
- The BSL market dislocation forced firms to find alternative financing, leading to increased use of private credit.
- The availability of private credit helped both sponsors and banks navigate the market challenges.