Modern Capital: The Private Markets Podcast Private Credit Meets the Valley, with John Markell and Matt Schwartz
5 snips
Dec 15, 2025 Join John Markell, a growth credit specialist from Armentum Partners, and Matt Schwartz, Head of U.S. Finance at DLA Piper, as they explore the revolution in private credit. They discuss the rise of growth credit for cash-flow negative businesses and how the collapse of SVB reshaped lender practices. Discover why enterprise software lending is oversaturated and where opportunities lie. Markell shares essential advice for founders on leveraging debt effectively, while Schwartz highlights the risks and nuances in today’s lending landscape.
AI Snips
Chapters
Transcript
Episode notes
Growth Debt Fills The 10–20% Risk Gap
- Growth credit sits between low-risk bank capital and high-risk equity, covering 10–20% expected return risk.
- It funds repeatable scaling activities like hiring sales or add-on acquisitions rather than new-market bets.
SVB Shifted Bank Underwriting And Opened Space
- SVB's collapse increased scrutiny on banks lending to cashflow-negative, venture-backed companies.
- That led to tighter underwriting, more covenants, and opportunities for private credit to step in.
Combine Tech Sourcing With Human Credit Work
- Use technology to narrow origination funnels and improve efficiency, but keep human credit analysis.
- Combine AI-driven sourcing with experienced lawyers and analysts to avoid costly mistakes.