News & Events

Corporate Partner Peter H. Gilman was quoted in a Law360 article titled “3 Things That Could Chill The Blazing Private Debt Industry.” In the piece, Peter discusses the factors leading to the recent growth in private debt fundraising by PE firms and how alternative investment firms are positioning themselves well to succeed in the private credit space. “On the supply side, the financial crisis left many traditional lenders on the sidelines in the face of tighter banking regulations and higher capital reserve requirements. On the demand side, low interest rates and market volatility caused many investors to seek out higher-yielding products with attractive risk-adjusted returns. The confluence of these two conditions created a profound opportunity for PE firms and other alternative capital providers in the private credit space, which fueled the growth we have seen in recent years in private debt fundraising,” Peter said.

The article also examines how private debt funds can offer superior flexibility and customization with borrowers relative to traditional lenders, and how rising interest rates may affect private debt going forward, with Peter concluding that “if overall economic growth continues and spreads remain stable, private credit investing should continue to thrive even in the face of rising interest rates.”

To read the article, please click here (subscription required).