Sponsor Behavior, Interest Rate Sensitivity, and Private Credit Opportunity

The panel explores how the 2021 vintage experience — where many sponsors were caught unhedged as rates rose sharply — is influencing current underwriting discipline. Ben Thompson notes increased focus on interest rate sensitivity and hedging policies. Adeel Shafiqullah argues that private equity value creation must now rely on genuine organic growth rather than financial engineering or multiple expansion. Matthew Layton observes that longer holding periods and fewer tertiary buyouts are reducing loan supply, while Ben highlights an emerging opportunity for private credit to capture deals that don't fit the obvious broadly syndicated profile.