Creating Alpha in Private Credit The term “alpha” in investing typically refers to the excess incremental return a manager achieves above an appropriate benchmark return (i.e. beta) specific to the asset class. However, in the context of this “creating alpha” series, we (“we” or “our” referring to Antares Capital) will also be considering the term […]
Get Key Takeaways from Antares’ 2024 Credit Market Outlook Survey
Antares conducted this survey over a three-week period between May 29, 2024 and June 21, 2024, primarily via email outreach. The key takeaways are based on survey responses from a total of 138 private equity sponsors and 60 Antares borrowers from a diverse set of industries and business models (32% manufacturing, 27% distribution, 42% services). […]
Base rate cuts ahead, but likely to be gradual with rates remaining “higher for longer” Some market observers have recently suggested that the “Golden Age” for Private Credit may be coming to an end. From our perspective, double-digit first lien yields were never likely to be sustained long-term. Nevertheless, we believe the current environment with […]
Five in Five Doug Cannaliato, co-head of Originations and responsible for Capital Markets at Antares, shares his views on the outlook for M&A activity and how Antares sources what it believes to be high-quality deals to construct resilient portfolios. 1. Why has the M&A environment remained weak throughout 2023 and the first quarter of 2024? […]
Insights into Deal Activity, Growth in the Private Credit Market, and More
Q A has led to a surge in loans trading above par and a repricing wave, with institutional refinancing volume of & Timothy Lyne, Antares Capital CEO Private Credit Mid-Year Check-In: Is it still a good time to invest? The reopening of the broadly syndicated loan market and related spread compression has grabbed headlines […]
The Magnetic Power of Private Credit: Attracting Insurance Investors with Stability and Returns Private credit, here defined as corporate direct lending, is an asset class that we have seen grow rapidly in the last few years for many types of institutional investors. For insurance companies, in particular, the asset allocation decision makers for the general […]
Of Principle Interest Credit Market Insights by Antares Off the Mark: Are Private Credit Valuations “Flawed”? Recently, some skeptics have suggested that loan valuations (“marks”) within private credit portfolios are potentially flawed and could pose a threat to the asset class’s surge in popularity among investors.1 Variance among lenders’ marks is to be expected. Most […]
Surging refi/repricing activity brings borrower relief Core middle market spread premium holds up well The allure of as much as 200-300 bps of spread relief for some borrowers has led to over $10 billion of BSL refinancing of private credit loans across 25 companies YTD-March 18; however, most of this volume – some of which […]