The New Demands of Private Credit

Outline (Given to freelancer)

Length: 1500 words

Audience: Executive network

There are some guidelines we'd like to keep in mind, however, considering this is an executive thought leadership piece there is some latitude with length:

- 1500 words

- less focused on T-REX (we really want to embody the CEO's POV and opinions, not the company's)

- more journalistic tone

References:

1. Growing private credit market: https://www.bloomberg.com/news/articles/2023-06-30/private-credit-and-hedge-funds-flooded-as-banks-dump-loans

2. Importance of underwriting terms: https://www.gsam.com/content/gsam/global/en/market-insights/gsam-insights/perspectives/2022/credit-terms_the-rising-importance-of-the-fine-print.html

When assessing a deal, there are two basics for assessing an opportunity - cashflow analytics and

scenario analysis. However, with ratings agencies behind and many private credit deals not even

undergoing the ratings process, how can you create a more holistic understanding of the investment and optionality over time?

New demands:

• History of an asset class

• Less fragmented data

• Easier data normalization

• More data management

• Need to be able to manage longer loan terms (more consistent revenue streams)

• Need to be able to handle more complex loan terms

KWs: private credit direct lending, private credit lending, direct lending deals, private credit deals

See the live article here.