News headlines have raised questions about private credit, from software exposure to broader portfolio performance. Yet beneath the surface, portfolio fundamentals across the market may be telling a different story.

In this episode of Insights from the PM's Desk, Brian Marcus, Head of Cross-Platform Investing within Global Credit, sits down with Alex Chi, Deputy Chief Investment Officer and Head of Direct Lending, to discuss what they’re seeing across portfolios, where lending conditions are evolving, and the areas of the market that may present opportunities today.

Looking beyond the headlines in private credit
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Key Takeaways

  • Portfolio fundamentals remain in focus: While select situations have attracted market attention, direct lending portfolios continue to exhibit stable credit performance and operating trends
  • A changing lending environment: Higher spreads, lower leverage levels, and tighter documentation standards may be creating a potentially more favorable backdrop for new deployment
  • Not all software businesses are the same: As AI reshapes the technology landscape, investors may need to distinguish between mission-critical software providers and businesses with more limited competitive advantages
  • Sector expertise matters: Areas such as aerospace and defense, healthcare, industrials, and select software businesses may continue to present opportunities for experienced investors
  • Potential opportunities beyond US direct lending: European direct lending, opportunistic credit, and asset-backed finance are among the areas drawing our attention in the current environment

Insights from the PM’s Desk is a video series where leaders across our firm share the trends shaping private markets, inviting advisors into the expertise that powers clients’ portfolios.

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Economic and market views and forecasts reflect our judgment as of the date of this video and are subject to change without notice. In particular, forecasts are estimated, based on assumptions, and may change materially as economic and market conditions change. Pacharbor Capital Group has no obligation to provide updates or changes to these forecasts. Certain information contained herein has been obtained from sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for the purpose used herein, Pacharbor Capital Group and its affiliates assume no responsibility for the accuracy, completeness or fairness of such information. This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. We are not soliciting any action based on this material. It is general information. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual investors.

Emp InvPosition Pacharbor Capital Group Global Credit
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Global Credit