Liquidity, Designed on Purpose Ask anyone paying attention to private credit headlines over the past six months what the biggest concern has been, and liquidity mismatch comes up fast. On a recent webinar introducing Garrington Private Credit to the US market, our Executive Vice President and Chief Risk Officer, Erica Axani, was asked directly about it. The mismatch behind…
When a Borrower Hits Distress: What a Disciplined Workout Actually Looks Like Every lender eventually has a borrower run into trouble. What separates a well-run credit book from a troubled one isn’t whether distress happens. It’s what the lender built in advance to handle it. On a recent webinar introducing Garrington Private Credit to the US market, our…
Not All Collateral Is Created Equal. Part Two of Three: What We Lend Against In Part One, we talked about the capital stack and why position matters. Senior secured lending gives you the first legal claim on a borrower’s assets. But that claim is only as good as the assets behind it. This is where a lot…
Where You Sit Changes Everything With the World Cup underway, even we Canadians are calling it football. Offence sells tickets, defence wins championships. In private credit, yield gets the attention. Protecting capital is what determines the outcome. We have written about the capital stack before. We will likely write about it again. What is happening across parts of…
What Actually Drives Returns? Correlation gets a lot of attention in investing. What drives that correlation matters just as much. Many asset classes ultimately respond to the same underlying forces — interest rates, market sentiment, liquidity conditions, broad economic cycles. When those pressures emerge, positions that once looked diversified can start moving together. That is why understanding…
The Cost of Recovery Most investors understand volatility. What is often underestimated is how long recovery can take once capital is impaired. A drawdown is not always just a temporary decline in value. In many cases, it can represent years spent trying to rebuild what was lost. For investors relying on portfolios to generate income, preserve…
Private Credit Under Pressure: Why Structure Matters More Than Scale In the past six months, private credit has moved from the business pages to the front pages. Federal fraud indictments. Emergency liquidations. Halted redemptions. The names now dominate the headlines: Tricolor Holdings, First Brands Group, Renovo Home Partners, BlackRock TCP, and most recently, Blue Owl Capital. We have addressed several…
Revisiting the Boutique Advantage in Private Credit There is growing recognition that “scale” in private credit does not always equate to “strength.” In fact, the structural realities of the underserved North American middle market continue to reinforce why a boutique approach, when executed with discipline, can offer something genuinely different. Given recent conversations with allocators in several regions, this…
Performance Reflects Preparation With the Winter Olympics underway in Milano-Cortina, many of us have been following the events between meetings and calls. It is a global reminder that while performance happens in the spotlight, the foundation for that performance is built long before. What we see on race day is the visible outcome. What we do not see are the…
What the BlackRock TCP Capital Write-Down Signals for Parts of Private Credit Summary: A recent 19% NAV decline at BlackRock TCP Capital underscores how concentrated exposures, equity-heavy restructurings, and high leverage can magnify losses in parts of private credit. It’s a reminder that outcomes across the asset class vary widely, and that conservative underwriting, modest leverage, first-lien security, and true…
