Reflections From SuperReturn North America

Earlier this month, Margarida Ferreira and Sandy Kaur attended the SuperReturn North America and Private Credit US 2023 conference. In this summary, they share their insights on the key themes and developments discussed at the event.

Manager perspectives

• Private debt managers are referring to the 2023 vintage as the "Goldilocks era" for private debt with the "just right" market conditions of high-interest rates pushing unlevered returns into the double digits with signs of distress remaining low. Managers believe 2024 will continue to prove favourable, although there are some concerns of increased defaults.
• Managers also referenced increased access to higher quality deals at lower leverage points and potentially more favourable terms. Better terms are not ubiquitous across the market, in some sectors competition remains high keeping terms more lax. This is also true in Europe, for example with some real estate debt deals remaining covenant lite.