Direct Lenders Achieve Lower Losses Than Syndicated Loans Through Better Diligence
Doug Ostrover · Private Equity Masters 6 – Doug Ostrover – Blue Owl Capital (Capital Allocators, EP.205) · Jul 26, 2021 · at 23:17
Doug Ostrover, co-founder of Blue Owl Capital, explains why direct lending provides superior downside protection relative to syndicated debt markets.
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“The other thing we need to do is because we can do a lot more diligence than a syndicated participant is to make sure we better protect the downside. Whatever the loan losses are in the syndicated market, we need to do a much, much better job. Because we have better information, and we've been able to do that.”
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