26
Jun
Opportunistic credit: ready for action
2024 saw increased activity in the opportunistic credit and special situations space, with significant fund closings and fund launches benefiting from high interest rates, as institutional investors look for higher, differentiated returns. It is expected that 2025 will see continued growth in this area as levered borrowers look for refinancing in the higher-rate environment. Our panel of opportunistic credit managers will discuss competitive landscape for the strategy in the next 12 months.
- What factors are propelling the continued growth of opportunistic credit?
- Which sectors and industries are being targeted by opportunistic credit managers?
- How is the opportunistic credit GP landscape evolving, and is it in danger of becoming oversaturated?
- Why are an increasing number of LPs looking beyond direct lending and allocating to opportunistic credit?
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SpeakersGary Creem Partner Proskauer
Patrick Schafer Managing Director, Credit BC Partners
Jesse Huff Co-Head Opportunistic Lending Fund Blue Owl
Noah Charney Managing Director and Head of Capital Markets King Street
Chris Kenny Managing Director OHA
Peter Ma Managing Partner and Co-Founder Square Nine Capital
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Gary Creem is a Corporate partner with Prosakuer Rose LLP and co-head of The Private Credit Group.
Gary focuses his practice on complex corporate finance transactions, including leveraged sponsor buyouts, acquisition financings and recapitalization transactions. Gary routinely represents an array of leading institutional investors in direct, club and syndicated financing transactions in the middle market and upper middle market, often involving cross-border components. His clients include leading investment banks, institutional investors, direct lenders, private debt funds, business development companies, and technology focused investors. Gary advises these clients on a range of credit products across the capital spectrum, including: senior and senior stretch loans; unitranche facilities (straight and bifurcated); second lien financings; mezzanine debt; subordinated notes; and other innovative financial products. Gary also advises clients on structuring software and other technology-based financings, including recurring revenue-based transactions.
A significant part of Gary’s practice is spent counseling institutional investors in complex inter lender arrangements, including agreements among lenders, intercreditor agreements and subordination agreements. Gary frequently advises clients on debt restructurings and out-of-court workouts, including forbearance matters, debt-for-equity exchanges, restructuring support agreements and Article 9 remedies. Gary has deep experience with non-traditional equity transactions, including debt-like preferred equity as third-party financing, equity kickers and co-investments for private credit investors and debt for equity swaps involving troubled companies.
Gary Creem is a Corporate partner with Prosakuer Rose LLP and co-head of The Private Credit Group.
Gary focuses his practice on complex corporate finance transactions, including leveraged sponsor buyouts, acquisition financings and recapitalization transactions. Gary routinely represents an array of leading institutional investors in direct, club and syndicated financing transactions in the middle market and upper middle market, often involving cross-border components. His clients include leading investment banks, institutional investors, direct lenders, private debt funds, business development companies, and technology focused investors. Gary advises these clients on a range of credit products across the capital spectrum, including: senior and senior stretch loans; unitranche facilities (straight and bifurcated); second lien financings; mezzanine debt; subordinated notes; and other innovative financial products. Gary also advises clients on structuring software and other technology-based financings, including recurring revenue-based transactions.
A significant part of Gary’s practice is spent counseling institutional investors in complex inter lender arrangements, including agreements among lenders, intercreditor agreements and subordination agreements. Gary frequently advises clients on debt restructurings and out-of-court workouts, including forbearance matters, debt-for-equity exchanges, restructuring support agreements and Article 9 remedies. Gary has deep experience with non-traditional equity transactions, including debt-like preferred equity as third-party financing, equity kickers and co-investments for private credit investors and debt for equity swaps involving troubled companies.
Mr. Schafer is a Managing Director at BCP Credit and serves as Chief Investment Officer of Portman Ridge Finance Corporation and Logan Ridge Finance Corporation, both publicly traded BDCs managed by BC Partners. Additionally, he is on the Board of Directors of Portman Ridge. Mr. Schafer joined BCP Credit in May 2018, having previously spent seven years at Apollo Global Management in the Opportunistic Credit group, most recently as a Managing Director in Direct Originations. Prior to Apollo, he spent three years at Deutsche Bank Securities in the Investment Banking Division. Mr. Schafer holds a BBA from the University of Notre Dame.
Jesse Huff is a Managing Director at Blue Owl and member of the Direct Lending Investment Team. In his role, he is Co-Head of Opportunistic Credit and shares portfolio management responsibility for the Blue Owl Opportunistic Lending Fund.
Before joining Blue Owl, Jesse was a Managing Director at Oaktree Capital Management focused on opportunistic direct lending. Prior to that, he was a Principal at the Carlyle Group focused on distressed and special situations. Jesse began his career as an analyst at Merrill Lynch and worked extensively across the special situation’s platform.
Jesse received his MBA from Columbia University and graduated from Ohio University with a BA in Finance.
Noah Charney is a Managing Director and Head of Capital Markets on the US Capital Markets team at King Street. He is based in New York and is a member of the US Investment Committee.
Prior to joining King Street in 2013, Noah was an Analyst at Trilogy Capital. Before joining Trilogy Capital, Noah held analyst positions at Och-Ziff Capital Management Group and GoldenTree Asset Management. Noah began his career at Bear Stearns and Credit Suisse First Boston Corporation.
Noah received a B.A. in Economics from Queen’s University and an M.B.A. from Harvard Business School.
Chris Kenny, Managing Director, serves as an investment professional focused on stressed and distressed investments as well as GP solutions financing. Mr. Kenny most recently worked at Diameter Capital Partners as a Senior Analyst focused on the energy, pipeline and power sectors as well as litigations/liquidations. Previously, he worked at Aurelius Capital Management as a Research Analyst, at Goldman Sachs as a Vice President in the Leveraged Finance Group and served as a submarine Junior Officer in the United States Navy. Mr. Kenny holds a B.S. in Electrical Science and Engineering from the Massachusetts Institute of Technology, a J.D. from the University of Virginia School of Law and an M.B.A. from the University of Virginia Darden School of Business, where he won a Shermet Award.
Peter Ma is a Managing Partner and Co-Founder of Square Nine. Mr. Ma will oversee all firm operations with a particular emphasis on the investment strategy, risk management, and process. Ma was most recently a Managing Director at Morgan Stanley, where he served as a member of the executive team for the Private Credit platform of Morgan Stanley Investment Management (MSIM), and a member of the Investment Committee for funds under the Direct Lending, Opportunistic Credit and Senior Loan strategies beginning in 2021. Mr. Ma has over 15 years of relevant industry experience, with a focus on originating and executing credit investment opportunities. Prior to joining Morgan Stanley, Mr. Ma was a Partner and Managing Director at Colbeck Capital, responsible for sourcing special situations credit opportunities, leading investment execution, and portfolio management. Prior to Colbeck, Mr. Ma was an investment banker at MESA Securities where he advised media & entertainment companies on mergers, acquisitions, and capital raising, with a focus on structured solutions. Mr. Ma is a graduate of Harvard University with a Bachelor of Arts in Economics.