Michelle Handy, Senior managing director and chief investment officer at First Eagle, discusses direct lending in the middle market, deal terms in private credit, and expectations for increased deal volume and a rate cut. Topics include shifts in M&A volume, impact of interest rate increases on enterprise value multiples, distinctions between cash flow financing and asset-based lending, and dialogue between private equity firms and LPs in the current environment.

Michelle Handy, Chief Investment Officer of Direct Lending at First Eagle Alternative Credit, shares her expertise in lower middle market lending. She discusses the challenges of intensifying competition and a complex macroeconomic landscape. Handy highlights asset-based lending as a promising strategy and emphasizes the critical role of strong sponsor relationships during turbulent times. Additionally, she dives into the nuances of covenant negotiations and the impact of retail capital on the lower middle market, shedding light on investment prospects and risks.