PDI Roundtable – Private debt prepares to ride out the storm

The U.S. economy has seen headwinds grow considerably over the past year as the post-covid boom subsided. Inflation is at a multi-decade high, supply-chain disruption continues and the Federal Reserve has been forced to raise rates faster than most anticipated a year ago.

But the private debt sector is more resilient than most. Indeed, rising rates and widening spreads have boosted investor returns, while deal terms have become more favourable to lenders and the average fund size topped $1 billion for the first time.

Despite this varied picture, the five industry leaders that gathered in New York for the Private Debt Investor roundtable, including Churchill’s Jason Strife, agreed that private debt can surmount macroeconomic obstacles. In fact, as the industry matures, the panel sees opportunities opening up in areas such as the secondaries market, ensuring that the asset class will become ever more attractive to institutional investors over the coming years.

Churchill Asset Management
375 Park Avenue, 9th Floor
New York, NY 10152
(212) 478-9200

Subscribe to our premier middle market newsletter: Subscribe

Copyright © 2024 Churchill Asset Management LLC. All Rights Reserved. | Privacy Notices

The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results. Please note investments in middle market loans are subject to various risk factors, including credit risk, liquidity risk and interest rate risk. Churchill Asset Management LLC is a majority-owned subsidiary and member of the TIAA group of companies.