Private Credit Consolidation Continues

Partner and co-chair of Herrick's Corporate Department, Morris DeFeo, was quoted in Alternative Credit Investor in an article discussing consolidation in asset management, particularly in the area of private credit. 

According to Morris, the demand for alternative credit will continue to grow and will inevitably drive more participants into the market. "They will be looking for economies of scale, additional growth opportunities, geographically and in different industry segments. At some point, you're going to be looking for acquisition targets. In any market that's growing and thriving there will be the need for continued expansion of investment opportunities and therefore talent."

In addition, in his view, this asset class will continue to thrive despite any headwinds. Morris also posited that there would be more "strategic collaborations and joint ventures, particularly in cases where asset managers are not ready for a full acquisition and are not quite ready to commit the capital and resources to plunge into a market." Morris highlighted that this approach could present problems if the two parties do not properly align. 

Read the full article in Alternative Credit Investor here. Access may require a subscription.