David Hirschman, Co-Head of Permira Credit, a specialist credit investor operating across direct lending, CLO management, structured credit and strategic opportunities, is expecting to see a record $10bn private credit loan agreed either this year or the next, according to a report by Bloomberg.
Speaking in the sidelines of this week’s IPEM conference in Cannes, the report quotes Hirschmann as telling Bloomberg TV that as large businesses “tend to be safer credits…there’s certainly a reason to be lending to those big companies and still generate 9-10% gross yield”.
Ultimately though, whether a record $10bn+ deal is agreed or not, depends on how well investment banks, the traditional source of finance for leveraged buyouts, manage to regain the ground they have lost to private lenders over the past 18 months or so, said Hirschmann.
