An Introduction to Private Debt

Private Debt has emerged as a formidable asset class. As traditional banking institutions dramatically scaled back their lending in the wake of the financial crisis of 2008, non-bank entities, often called direct lenders, filled the void to supply the market with vital capital. In the years since, the Private Debt markets have seen impressive growth. New ventures, small and medium-sized enterprises (SMEs) and distressed entities have found direct lenders more accommodating, nimble, and responsive than traditional banks to sector challenges and their specific business needs. As investors search for yield, Private Debt is frequently chosen as an attractive option due to the strong returns offered by this asset class. This has resulted in continued growth of what remains a relatively new, sophisticated, and fast-evolving market.

This program will provide a general overview of Private Debt for attorneys seeking a better understanding of this important asset class. Practitioners Gabriel Yomi Dabiri, Co-Leader of Polsinelli's Private Debt and Cross Border Finance team, and associate Emily Phillips, will describe the characteristics of the Private Debt market, discuss the reasons why Private Debt, which emerged during the Great Recession, has continued to grow even as the economy has recovered, and will assess the role that Private Debt could play during the next downturn.

Learning Objectives:

1. Identify what constitutes Private Debt
2. Appreciate the context in which this asset class came to prominence
3. Differentiate Private Debt from other asset classes
4. Discuss the advantages and disadvantages of Private Debt
5. Forecast the future of the Private Debt market