Core Viewpoint - Monroe Capital LLC has successfully closed its 2025 Monroe Capital Private Credit Fund V, achieving a total investable capital of $6.1 billion, which includes targeted fund-level leverage and separately managed accounts pursuing the same investment strategy [1]. Group 1 - The final close of Fund V marks a continuation of Monroe Capital's focus on providing senior secured financing solutions [1]. - The fund is aimed at both private equity sponsored and non-sponsored entities [1].

Group 1 - The firm has launched a new private credit fund aimed at supporting loans to lower middle-market companies [1]

Core Insights - The Arrived Private Credit Fund targets an annualized income of approximately 8.1%, primarily through interest payments on short-term real estate loans, distinguishing it from traditional high-yield savings accounts and CDs that offer 4-5% [2][7]. Group 1: Fund Operations - The fund provides short-term loans, typically ranging from $100,000 to $500,000, to professional real estate operators for various projects such as renovations and residential construction [4]. - It diversifies risk by holding multiple loans across different markets, ensuring that no single deal significantly impacts the overall portfolio [5]. - Loans are secured by residential real estate in the first-lien position, providing a safety net in case of borrower default [5]. Group 2: Risk Management - The fund employs conservative loan-to-after-repair-value targets, often below 70%, to create a buffer between the loan amount and the estimated value of the finished property [6]. - While the fund offers attractive returns, it is important to note that it is not risk-free or as liquid as traditional savings accounts [3]. Group 3: Return Characteristics - The focus of the fund is on generating income rather than capital appreciation, with returns primarily driven by interest payments rather than share price growth [7].

Core Viewpoint - The private credit industry, valued at $1.7 trillion, is under increased scrutiny from global regulators regarding the integrity of ratings assigned to its debt instruments [1]. Group 1: Regulatory Concerns - The Financial Stability Board (FSB) has raised concerns about "ratings shopping" in private markets, where firms may select the most favorable ratings from multiple providers [2]. - Officials at the Basel-based institute are worried that private credit ratings lack the same regulatory safeguards as securitization, which requires multiple independent credit ratings and strict conflict of interest management [3]. - The FSB's focus is on identifying risks and vulnerabilities in non-bank financial institutions, including hedge funds and asset managers, rather than making immediate policy recommendations [4]. Group 2: Market Integrity Issues - A German pension fund has reported over €1 billion in losses from private market investments, questioning the integrity of some credit ratings and highlighting valuation risks in this asset class [5]. - The Bank of England is set to examine the role of ratings firms in a system-wide exploratory scenario covering private markets, with a stress test planned to assess the sector's response to economic shocks [6]. - The results of the Bank of England's stress test are not expected until 2027, and no detailed policy actions regarding ratings firms have been developed yet [7]. Group 3: Ongoing Investigations - The scrutiny of ratings firms has intensified following the SEC's investigation into Egan-Jones Ratings Co, a significant provider of private credit ratings [8]. - UBS Group AG's chairman has also warned about "ratings arbitrage" in the insurance industry, which has expanded rapidly due to strict lending restrictions on banks over the past 15 years [8].

KKR is providing private credit financing to a desalination plant in Saudi Arabia, marking the alternatives giant’s first foray into the kingdom https://t.co/QtwsiFoocG ...

Funds called BDCs that make corporate loans have had a rough 2025, just as the private-credit industry looks to "democratize†their offerings. ...

Core Viewpoint - The private equity (PE) market is expected to experience significant growth and favorable conditions leading into 2026, with increased transaction volumes and improved exit opportunities [1]. Private Markets Activity - Transaction volumes in private markets are projected to increase by approximately 35% year-over-year, bringing US levels close to 2021 figures, while Europe is expected to surpass those levels [2]. - Global M&A volumes have risen by about 40% year-over-year, indicating a robust environment for exits [3]. - The US IPO market has rebounded by around 70%, further supporting a favorable deployment environment [4]. Valuations and Entry Points - Valuations for private equity-backed companies are significantly lower than those in public markets, with EV to EBITDA multiples around 12 in private markets compared to 17 or 18 in public markets, presenting a favorable entry point for investors [4]. Private Credit Market - The private credit market has grown from approximately $600 billion in assets under management (AUM) to about $1.7 trillion, leading to increased media attention and headlines [6]. - Concerns surrounding private credit are often idiosyncratic and not necessarily reflective of the overall market conditions [5]. - The default rate for private credit, particularly for private equity-backed companies, remains low at around 1%, indicating stability in this segment [7].

Core Viewpoint - The current economic landscape is characterized as a K-shaped economy, where certain sectors, particularly technology and data centers, are thriving, while others, such as manufacturing and chemicals, are experiencing significant downturns [3][4]. Group 1: Economic Conditions - The manufacturing sector in the U.S. has faced nine consecutive months of negative growth, indicating a recessionary trend [4]. - Despite the challenges in manufacturing, there is no expectation of an imminent large-scale recession, as the overall economic outlook remains cautious but stable [4][17]. - The leveraged credit market is under pressure due to higher interest rates and stagnant earnings in many businesses, necessitating a focus on capital restructuring [5][10]. Group 2: Investment Opportunities - There are numerous companies with significant debt levels, particularly those with debts exceeding $2 billion, which are now trading at distressed prices, indicating potential investment opportunities for restructuring [9][13]. - Many businesses are over-leveraged and require additional capital to stabilize their balance sheets, presenting opportunities for private credit investments [11][13]. - The high-yield market is expected to see increased supply as hyperscalers are borrowing, which may lead to widening spreads in the absence of a recession [18]. Group 3: Regulatory Environment - There is growing attention from regulators regarding the need for stress testing in the credit market, similar to banking regulations, which could impact alternative lenders [14][15]. - The competitive landscape among lenders is shifting, with banks gaining more flexibility, potentially affecting the dynamics of private credit markets [15][16].

BETHESDA, Md., Dec. 11, 2025 (GLOBE NEWSWIRE) -- MidCap Financial (“MidCap”), a leading provider of credit solutions to the middle market, today announced key leadership appointments in accordance with its long-term succession planning. Effective January 1, 2026, Josh Groman, current Chief Investment Officer, will succeed Steve Curwin as Chief Executive Officer, and Randy Feldner, current Deputy Chief Financial Officer, will succeed David Moore as Chief Financial Officer. Curwin and Moore will remain with t ...

Core Viewpoint - Apollo is set to release a definitive book on private credit as a holiday gift, aiming to clarify misconceptions surrounding the term and its implications in the financial markets [2][5]. Group 1: Private Credit Definition and Misconceptions - The book will address the confusion over the definition of private credit, which has been exacerbated by media narratives [2][5]. - Apollo's CEO Marc Rowan emphasizes that many people do not understand what private credit is and often confuse it with traditional banking [5]. Group 2: Industry Response to Recent Events - The release of the book follows high-profile bankruptcies, including Tricolor Holdings and First Brands, which have raised concerns about the risks associated with private credit [2][3]. - Industry leaders, including Blackstone's CEO Steve Schwarzman, have pushed back against the narrative linking private credit to these bankruptcies, attributing the failures to banks instead [3][4].