Debtwired!

In this episode of Debtwired, Albane Poulin, Head of Private Credit at Gravis, discusses the evolving role of private credit in infrastructure and real estate finance across the UK and globally.

Thomas Kennedy, Chief Investment Strategist for JP Morgan Private Bank, shares insights into today's shifting debt markets. He discusses how monetary policy changes and geopolitical tensions, like tariffs, are affecting interest rates and high-yield investments. Kennedy highlights the rise of direct lending and private credit as key strategies for navigating market uncertainties. He also suggests rethinking traditional investment approaches, prompting a fresh look at diversification beyond the usual stock-bond mix.

Dennis Heuer, partner at White & Case, joins Debtwire’s Johannes Koch to explore the impact of the Secondary Credit Markets Act (Kreditzweitmarktgesetz) on the market for non-performing loans.The act, or NPL-directive for short, was introduced just over a year ago in Germany to help foster a deeper and more liquid secondary market for non-performing loans. Now that the dust has settled on its introduction, Heuer reviews the basic tenants of the law, how it has impacted market participants and ultimately, gives us a view on whether it has delivered, or has yet to deliver, on its promise.Heuer is a partner at White & Case and an expert in structured finance and securitisation within the law firm’s EMEA Structured Finance Group. He represents clients, among them banks, insurance companies, debt collectors and multinational corporates on a wide range of cross-border transactional and advisory matters.

Danyal Khan, founder of Altocrest Advisory, brings over a decade of institutional banking experience to the discussion. He shares insights on the unique challenges smaller businesses face in securing debt financing. Khan emphasizes the advantages of boutique firms, offering personalized support often overlooked by larger institutions. He also tackles misconceptions about debt and the growing importance of transparent relationships between businesses and lenders. With elevated interest rates, he guides entrepreneurs in navigating a complex, evolving lending landscape.

Engin Okaya, an executive managing director at PGIM Private Capital, shares her expertise on private credit trends and strategies. She discusses the value of a structured framework for evaluating lending while emphasizing middle-market companies for stable investment. Engin highlights the growing collaboration between private credit firms and banks, enhancing deal opportunities. She also delves into the transformative role of artificial intelligence in investment decisions, viewing it as a tool to support human judgment rather than replace it.

Kirstie Hutchinson and Adam Caines, private capital partners at Macfarlanes, dive into the evolving landscape of mid-market loan documentation in Europe. They discuss how relaxed documentation practices are shifting the balance in favor of borrowers, and highlight new clauses that may raise concerns among lenders. The conversation also touches on the impact of external events like COVID-19 on loan structures, emphasizing the importance of strong relationships between borrowers and lenders in navigating this complex terrain.

Jennifer Daly, the Head of Private Credit and Special Situations at Paul Hastings, offers deep insights into the evolving private credit market. She discusses trends and optimism surrounding mergers and acquisitions in sectors like healthcare and technology. The conversation highlights the implications of tariffs, the balance between rising costs and lower interest rates, and the shift towards more flexible deal structures. Daly also navigates the differences between Chapter 11 bankruptcy and out-of-court restructuring, emphasizing the new protections for borrowers.

On the latest episode of the Debtwired! podcast, Laleh Bashirrad, managing director at BNP Paribas' leveraged syndicate team, speaks to Melina Chalkia, primary markets reporter of Debtwire North America, about the latest trends in the broadly syndicated market and the 2025 outlook.Bashirrad has over two decades of credit experience advising sponsors as well as large and midcap clients on capital structure and pricing considerations for buyouts, acquisitions, recapitalizations and refinancings. In this podcast, Bashirrad gives an overview of the current supply and demand dynamics in the BSL market and outlines her optimistic view on demand for high yield products. While she expects the trend of refinancings to continue to dominate in the early months of 2025, she notes the building M&A pipeline could bring forth robust activity for the rest of the year. Bashirrad also highlights partnership opportunities between BSL and private credit, which are often seen as competing market players.

Nael Khatoun, an MD and portfolio manager at Oaktree, dives into the exciting new partnership with Lloyds Bank. He shares how this collaboration redefines private credit solutions in the UK, offering faster financing amid rising interest rates. The discussion highlights tailored strategies for navigating market risks and the increasing influence of retail investors in private credit. Khatoun also sheds light on promising sectors like life sciences and NAV finance, revealing how they are positioning themselves in a competitive environment.

Debtwire's Amelia Weitzman is joined by Ambarish Dash and Will Nevin, partners within Herbert Smith Freehill’s banking and finance division. Will is a London-based partner with over 20 years of experience in acquisition and leveraged finance, and Ambarish is also partner in the London office specializing in domestic and cross-border leveraged finance, particularly advising private equity sponsors and financial institutions on acquisition financings.We’ll hear their views on recent trends in the financial institutions market, or ‘FIG’ as it’s referred to, with a focus on private credit terms.#privatecredit #FIG #HerbertSmithFreehills