Michael Gatto

Michael Gatto, Partner and head of private side businesses at Silverpoint Capital, shares insights on the precarious state of private debt funds in today's market. He warns that when the credit cycle shifts, many funds overly exposed to weak companies could face dire consequences. Gatto discusses Silver Point’s strategies for navigating private credit, emphasizing the importance of due diligence and strong lender-sponsor relationships. The conversation also touches on the evolving landscape of liability management and the complexities of LMA documents in stress investing.

Michael Gatto, Head of private-side investing at Silver Point and author of The Credit Investor's Handbook, dives into the intricate world of distressed debt investing. He explains how it differs from equity investing and why creditor negotiations are crucial. Gatto discusses 'liability management exercises' and the chaotic landscape of private credit, emphasizing that distressed investors can be misunderstood as vultures. He also analyzes the current credit cycle and shares insights into career building in credit investing, outlining key skills and networking tips.