Delos’ Lefkovits on Private Credit, Default Trend: Credit Crunch
Feb 28, 2025
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Ari Lefkovits, managing partner at Delos Capital, shares insights on hybrid capital solutions aimed at helping SMEs deal with high borrowing costs. The discussion uncovers trends in the private credit market, revealing the shift towards co-op agreements among lenders and the evolving default process. Lefkovits also highlights how hybrid capital can provide financial advantages amidst inflation and tariffs. This conversation offers a fascinating look at the current financial landscape and its implications for small businesses.
Hybrid capital solutions are emerging as crucial aids for small and medium enterprises facing significant balance-sheet challenges due to high borrowing costs.
The podcast discusses trends in private credit markets, emphasizing the evolving default process and the growing adoption of co-op agreements between lenders.
Deep dives
Frontline Therapy Insights in Multiple Myeloma
The discussion reveals that Darzalex is currently the leading treatment for newly diagnosed multiple myeloma, with significant adoption of a four-drug induction regimen among transplant-eligible patients, showing over 50% utilization in the US and up to 70% in Europe. However, there remains potential growth in the treatment of transplant-ineligible patients, where usage is approximately 30% in the US academic centers and around 20% in Europe. Maintenance therapy also shows room for improvement, with current usage ranging from 15% to 30%, suggesting a critical need for more compelling data to advocate for extended maintenance treatments. Future trials are anticipated to provide more clarity on the efficacy of various maintenance strategies, influencing broader implementation in treatment plans.
Relapsed Refractory Treatment Landscape
The outlook for relapsed refractory myeloma shows that CAR-T therapies like Carvicti have started gaining traction, especially in academic settings with a median usage of about 30% for early relapses. In contrast, community practices show only a 10% uptake, likely due to the challenges of administering CAR-T in non-academic environments. In Europe, access and cost issues hinder the broader rollout of these therapies, highlighting a need for improved access to new treatments. As treatment paradigms evolve, the landscape remains dynamic, with a focus on demonstrating the benefits of emerging therapies to optimize patient management in relapsed scenarios.
Madrigal's Advancements in NASH Treatment
Madrigal Pharmaceuticals reported promising two-year data from its Maestro-NAFLD trial, particularly in patients with advanced NASH, demonstrating a significant reduction in liver stiffness associated with their treatment, Resifera. The reported results surpassed those of competing therapies like Akira's Efferuxifurmin, suggesting a notable potential for Resifera in clinical application. With management hinting at a possible increase in sales expectations, confidence in its market viability is strengthening ahead of further pivotal studies. If future trials yield positive outcomes, Madrigal could substantially increase the market opportunity for Resifera in addressing liver disease.
Revolution Medicine's Bold Move in Pancreatic Cancer
Revolution Medicine has announced ambitious plans to initiate pivotal trials for its RAS inhibitor, Dirac RASib, in pancreatic cancer, aiming to capture a significant share of the market despite the high risk of clinical failure in this area. The inclusion of an unexpected adjuvant trial alongside initial treatment plans demonstrates a proactive approach to addressing unmet needs in pancreatic cancer, which could result in a substantial market opportunity worth an estimated $6 billion in the US alone. However, uncertainties remain regarding the trial designs and patients' ability to tolerate combined therapies, raising questions about the feasibility of their approach. As Revolution moves forward, their focus on establishing themselves in this competitive space will be critical for their long-term success.
Hybrid capital solutions may aid small and medium enterprise companies confronting balance-sheet challenges amid persistently high borrowing costs. Ari Lefkovits, managing partner at Delos Capital, joins Bloomberg Intelligence’s credit strategists Noel Hebert and Sam Geier on this episode of the Credit Crunch podcast to discuss trends in private credit markets, and Delos’ advisory and principal investment approach. The conversation digs into the adoption of co-op agreements between lenders, transformations in the default process, hybrid capital benefits as well as inflation and tariff impacts.
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