Private credit presents significant opportunities, particularly in middle market direct lending. In this new piece, PGIM's Dianna Carr-Coletta shares insights on market dynamics, investment opportunities, and key risks in an increasingly competitive market. Key takeaways include:
Stronger protections: Middle market loans often include maintenance covenants, lower leverage, and more favourable terms, offering more downside protection than covenant-lite upper market deals.
Diversified origination: Access to both sponsored and non-sponsored deals allows investors to capture relative value and avoid overexposure to the LBO cycle.
Defensive positioning: With low correlation to public markets and stable performance across cycles, private credit continues to prove its value in volatile environments.
In a competitive market with limited M&A activity, disciplined managers with differentiated sourcing strategies are best positioned to deliver. Read on to discover how middle market private credit can strengthen your portfolio.
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