Schulte partner Doug Mintz spoke with journalist Bailey McCann for the Chief Investment Officer article titled, "Is Private Credit Starting to Show Some Stress?" Doug discussed the rapidly growing private credit market and the increasing risk that credit standards will decline. He stressed that investors – not just managers – will want to be especially focused on doing their due diligence on those deals, to make sure they are comfortable with the risks non-bank lenders are taking. He added that diligence is also important because private debt really has not yet experienced a significant downturn, so it is not totally clear how these funds will react.
Doug stated that “[t]he challenge with private debt is that its rise as an asset class has happened over the past 10 years, and the last meaningful period of distress was over 15 years ago. So people are coming into this without a frame of reference. I think investors will want to focus on due diligence if they want to manage risk.”
Read more here.