Non sponsored private credit
Can someone discuss this space - market growth, key players, day in the life? Thanks
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Non-sponsored private credit refers to lending directly to companies without the involvement of a private equity sponsor. Here's a breakdown based on the most helpful WSO content:
Market Growth
Key Players
Day in the Life
Non-sponsored private credit often involves smaller deal sizes, illiquid loans, and a focus on holding investments through maturity. This requires a deep understanding of credit risk and strong relationship-building skills.
Sources: Best direct lending shops in Asia, Undergraduate Opportunities - Credit Funds, State of Credit markets now and in the future?, https://www.wallstreetoasis.com/forum/private-equity/qa-non-target-top-bucket-ssg-private-creditdirect-lending?customgpt=1, Sponsors coverage in Australia
Bump
Not super different - helps when there's a banker
Probably more im not thinking of but will add later. Obv this is thinking of more an LMM credit but non-sponsored also covers some VC back late stage lending, rescue lending and public co getting a PC deal etc
I agree with all the points above. It is a much more difficult underwrite and investment strategy. That being said, you can get compensated and real alpha if you can underwrite those deals, but the floor can be significant if you miss. It is old school lending.
TCW Regiment, GE, Cerberus, Fortress and GS SSG were the original big players in that space. Now the most well known fund that focuses primarily on non-sponsored is probably MGG. The big players still operate in it, but the sponsor side of their business is significantly larger as it is much easier to scale and makes more money for the GP.
Some of the players that still traverse: TCW, Cerberus, Fortress, HPS, FS, MS Opportunistic, Sixth Street, Blue Torch, Blackrock (old Tennenbaum).
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