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Summary

The alternative credit space in the US and the European loan markets have been seeing stellar growth thanks to a shift away from traditional lenders.

Direct lending has reached new peaks; direct lenders led or agented several multi-billion-dollar facilities last year, shattering deal records.

There is a paradigm shift, marked by growing scale, shorter deal cycles, new financing structures (e.g., uni-tranches), and 'covenant-lite' issuances. Investors and lenders alike need to rethink their investment practices, be it underwriting, due-diligence, or identifying exclusive opportunities with consistent returns.

In this milieu, Crisil hosted a webinar titled 'Alternative credit at a crossroads - Time to reset, readjust and refocus', where global experts shared their insights on the evolution of the alternative credit space, including the regulatory developments, changing underwriting and due-diligence methods, headwinds, and strategies to sustain alpha amid intensifying competition. The topics included:

• Outlook for the alternative credit space over the next 12 months amid headwinds such as rising inflation and interest rates
• Roadblocks the alternative credit firms are likely to face in ESG integration
• Balancing the underwriting standard and lending strategy amid a record deal flow with a surge in covenant-lite loans and shorter deal cycles
• Pricing risk and finding a consistent premium amid increased competition
  

If you have any queries please write to us at nikita.david@ext-crisil.com.