OPAL Group Private Credit Summit 2024: Key Takeaways

Session: Private Credit Fundamentals and the Direction of Travel for Credit Markets

Paddy Rath, partner:

"It was interesting to hear panellists exchange views on the impact of higher interest rates on borrowers, particularly in terms of how bigger companies were able to push through bigger EBITDA increases to service their debts. Have we seen the worst of the impact of higher rates? Time will tell. Panellists spoke about increased private credit deal activity in H1 of 2024 driven, in part, by the fact that private credit lenders are getting comfortable on rates, inflation and other macro-economic factors. Panellists also shared their thoughts on the potential impact of decreasing rates on private credit lenders and how private credit lenders will adapt to the new market dynamics, including by adding value in other ways. It was interesting to hear how continued bank retrenchment and the trend towards disintermediation may lead to real market share gains and