The Credit Edge by Bloomberg Intelligence Private Lender Arcmont Says High Returns Here to Stay
Jun 13, 2024
European private debt firm Arcmont Asset Management's co-CIO, Mattis Poetter, discusses the sustainability of double-digit returns in private credit despite dropping interest rates. Topics include defaults, pay-in-kind structures, debt-for-equity swaps, market dislocations, and opportunities in net-asset-value financing.
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Consistent Growth in Private Credit
- Arcmont's European private credit growth has been consistent for over a decade.
- Fundraising has been bifurcated, favoring larger, specialized asset managers.
Arcmont's Investment Approach
- Arcmont maintains a consistent investment strategy focused on contractual returns in private credit.
- They prioritize steady underwriting discipline and avoid binary or regulatory risks.
Fundraising Advice
- Cultivate long-term relationships with investors who have seen your returns and behavior with troubled assets.
- This builds trust and facilitates easier fundraising.