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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed doesn't have an argument to cut rates this year, says Ares Head of Credit Kipp DeVeerKipp DeVeer, head of Ares Credit Group, joins 'Closing Bell Overtime' to talk working with banks, commercial real estate exposure, his take on Fed rate cuts and more.
Persons: Ares, DeVeer Organizations: Ares Credit Group
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAres' Kipp deVeer talks the private credit picture in volatile lending marketKipp deVeer, Ares Credit Group, joins 'Closing Bell Overtime' to talk the private credit space, cashing in on volatility, and more.
Persons: Kipp deVeer Organizations: Ares Credit Group
Private equity firms lend less as demand cools
  + stars: | 2023-03-03 | by ( Chibuike Oguh | ) www.reuters.com   time to read: +4 min
The amount of loans disbursed by direct lenders so far in 2023 has not shown any pickup, the Refinitiv data shows. Also weighing on deal volumes is the cost of borrowing from private equity firms. This has dampened demand for loans from private equity firms. For their part, private equity firms have also become more risk-averse when it comes to lending, as the economic slowdown and sticky price inflation erode the credit worthiness of some borrowers. To be sure, major deals using private equity firms as lenders are still getting done as banks have continued their retrenchment from risky debt.
At the Greenwich Economic Forum on Tuesday, big investors said they expected a downturn. Many big investors anticipate a lighter recession than in the past as the Fed hikes interest rates. And while it's held in the hedge fund capital of the world, private credit dominated discussions. Some investors, like Lawrence Golub, chief executive of $55 billion credit asset manager Golub Capital, expect a period of low growth but no severe recession. It's going to be one where there's some economic growth in various parts of high-end consumer, or other areas," he said.
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