On the latest episode of The Deal’s Behind the Buyouts podcast, Churchill Asset Management LLC managing director on the private equity and junior capital team Anne Philpott discusses private credit’s boom and deal flow in 2024.
“On the junior capital side for mezzanine, we’re seeing a combination right now of lower leverage and high interest rates, and so it’s making our pipeline of opportunities very, very attractive,” Philpott said.
Churchill, which has more than $50 billion in assets under management, provides senior and junior debt, makes equity co-investments and invests in private equity funds as a limited partner.
Private credit captured more share in the M&A market as traditional bank lenders pulled back from deals in the second half of 2022. Even as bank lenders return to the table, private credit’s flexibility in bypassing rating agency requirements, cutting bigger checks or providing options such as payment in kind still give the asset class an advantage.
Churchill is also seeing an uptick in buyout opportunities, according to Philpott.
“We’re seeing some great transactions as everyone moves towards a flight to quality,” she said.
Philpott previously worked as a senior director on the private equity and junior capital team at Churchill parent Nuveen LLC.
Listen to the episode with Anne Philpott below:
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