Private Credit – Good Grapes and Bad Grapes
We were sad to hear of Coca-Cola’s decision last week to discontinue Tab by year end.
Launched in 1963 Tab was a pop culture icon, appearing in Back to the Future and Ghostbusters. But competition from Diet Coke spelled its demise.
It takes superior management to keep brands vital. Remember Scooter Pies, Quisp, or FudgeTown cookies? Without support even popular snacks will fade away.
Private credit, similarly, features a number of participants, but not all created equal. Some have long successful track records. Others, as one friend put it, “are operating without a driver’s license.”
A reporter with one top institutional investor-focused publication asked about our view that 2020 could be the best vintage for private credit in a decade…
▶︎ Read Oct 19 2020 newsletter: here
▶︎ Chart of the Week: here (by Refinitiv LPC)
Latest news
US Leveraged Loan Launches Exceed $30b in post-Labor Day Rush
The US leveraged loan market recorded $24.6b of new launches on Tuesday, September 8, marking the busiest post-Labor Day surge…
PE fund distribution rates
Following 2021, buyout distribution rates have fallen to roughly 10% to 15% below the 25-year average.