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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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.
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