Eric Capp talks to Reuters on the impact of the recent rate rise for Direct Lenders
Eric Capp, our Head of Origination, spoke to Reuters’ David Brooke about the impact November’s interest rate rise by the Bank of England may have on the private debt market. The article discusses how European private debt has flourished in a decade of low interest rates.
‘Interest rate normalisation is not negative for private debt funds,’ Capp said. ‘An increase in rates may take some of the hot money out of the direct lending market and away from marginal firms who have recently entered the market without sufficient origination capabilities, monitoring and control infrastructure, as well as long-term institutional backing.’
Read the full article here.
