Alex Chi

Private credit is holding up despite macro and geopolitical volatility; defaults are up but within cycle averages, and disciplined underwriting matters. Because the asset class is mostly floating-rate and borrowers are less levered, higher rates are not a demand problem. The coming maturity wall and M&A financing needs create opportunities to deploy in opportunistic credit, traditional direct lending, and hybrid capital at attractive economics; hybrid capital also diversifies away from traditional corporate credit and gives exposure to the real economy.