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Guggenheim Macro Markets

Episode 50: Investing in Private Debt

Mar 25, 2024
Joe McCurdy, Head of Origination on the Private Debt team, discusses the growth of private debt as a capital option, its advantages over traditional loans and bonds, and the investment opportunities and risks in the sector. Topics include deal sourcing, pricing, return profiles, and strategies for successful private debt investments.
23:52

Episode guests

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Quick takeaways

  • Private debt market offers attractive returns and creditor protection compared to traditional markets.
  • Private equity firms seek private debt deals structured with diverse capital mechanisms and negotiated pricing based on risks.

Deep dives

Overview of Private Debt Market

Private debt involves loans originated directly by investors, cutting out the traditional bank intermediary. The market size is estimated to be around $1.4 trillion, attracting borrowers like private equity firms and non-sponsored entities. Major investors range from BDCs to various institutional investors, with deal sizes varying across different EBITDA ranges.

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