11-Apr-2025
Webinar: What is really going on in private credit
In the latest “It’s not all PC” webinar series, experts with three different perspectives unpack what investors want to better understand about private credit’s risks and rewards.
Capital Brief writes that private credit veteran Ryan Donnar says discipline is key as new lenders flood the market and risks mount in a sector chasing fast growth and high returns.
Capital Brief covered Privity Credit’s recent webinar where Ryan Donnar discussed with Alvarez & Marsal’s Sebastian Paphitis and Scarcity Partners’ Tim Samway “What’s really going on in private credit”.
In the article, Capital Brief wrote that private credit has grown rapidly, but Ryan Donnar of Privity Credit warned that this expansion comes with heightened risks in a weakening economy. Donnar said the team has been managing their loan book “as though we’re in a full blown recession for the last 24 months,” emphasising caution and discipline. He urged other fund managers to avoid “style drift” and stick to areas where they have genuine expertise, pointing to Privity’s decision to steer clear of the overheated corporate real estate sector. While the sector is maturing and expanding into areas like energy transition and digital infrastructure, Donnar cautioned against chasing higher returns at the expense of risk. Privity, he noted, is positioned conservatively, with protections in place to maintain stable yields even as rate cuts loom.
A full copy of the article is available on the link below (subscription required).
