Deals
Private Credit Switches Up Sales Pitch to Win From Higher Rates
- Loans offer inflation protection, seniority, better returns
- Rising yields may push some risky borrowers into default
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Low interest rates saw private credit boom. The beneficiaries see no reason why rate rises should end the party.
“There’s a little bit of a Goldilocks moment,” said Kipp deVeer, chief executive of Ares Capital Corp., on the business development company’s earnings call this week. “Where our company does well, our portfolio companies don’t do any worse or materially worse in a way that we think will create defaults or credit problems, and we hope we can sail through with that combination.”