BADGER
MICHAEL AVERY: Private credit’s siren song amid underlying risks
With more than $1-trillion in debt poised to mature the real test of this market’s resilience is on us
06 May 2024 - 05:00
Private equity principals could scarcely contain their enthusiasm for the virtues of private credit or debt (and the juicy fee income to be generated from originating these deals) at the recent African Private Capital Association (Avca) private equity conference in Sandton.
The allure of private credit is undeniable. It offers borrowers flexibility away from the prying eyes of public markets and provides investors with juicy returns in a yield-starved world. But, like an iceberg, what lies beneath its surface could sink the unwary. ..
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