The Credit Edge by Bloomberg Intelligence

Pemberton Builds NAV Loans, CLOs for Private Debt Edge

Jan 23, 2025

Symon Drake-Brockman, co-founder and managing partner of Pemberton, dives into the dynamic world of European private credit. He discusses how to stay competitive with a diverse product range, including net asset value financing and CLOs. Drake-Brockman shares insights on the relative strengths of US versus European private credit markets while exploring strategic partnerships and risk management. He also reflects on the lessons learned from financial crises and the importance of innovation in today’s credit landscape.

43:57

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Episode guests

Symon Drake-Brockman

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Episode notes

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Quick takeaways

Pemberton Asset Management emphasizes the need for diverse financial products like NAV financing and CLOs to stay competitive in private credit.

The European mid-market is undergoing significant transformation, offering substantial investment opportunities amid challenges faced by new entrants in private credit.

Deep dives

The Current State of Credit Markets

Credit markets are experiencing a surge, with significant global borrowing activity. This month is projected to set a record for debt issuance in the U.S., primarily for refinancing purposes as debts come due. Investors are finding high-grade corporate bonds yielding nearly 5.5%, appealing due to minimal default risk; this environment raises questions about the necessity of exploring private markets. However, limited supply is prompting investors to seek opportunities in structured finance and private debt, despite concerns about complacency and risk mispricing in the market.

Intro

3min

Opportunities and Challenges in European Private Equity

4min

Navigating Private Debt in Europe

26min

Investing Across the Atlantic

5min

Lessons from Financial Crises

6min

Exploring Credit Markets and Innovative Business Solutions

2min

UK-based Pemberton Asset Management has widened its scope to stay ahead in the increasingly competitive world of private credit. “You’ve got to have a range of products that people think are relevant and attractive,” said Symon Drake-Brockman, the firm’s co-founder and managing partner, referring to net asset value financing, collateralized loan obligations and risk sharing, among other businesses. “We can build large verticals in each one of those strategies,” he tells Bloomberg News’ James Crombie and Silas Brown, and Bloomberg Intelligence’s Jeroen Julius, in the latest Credit Edge podcast. Drake-Brockman and Julius also discuss relative value between US and European private credit, areas of stress and whether US deregulation will boost competition from traditional lenders. “If you’re a chief executive of bank, you’ve got to make sure the pendulum doesn’t swing back the other way in four years’ time,” said Drake-Brockman.

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