Giannini: High equity cushions will protect private credit from broad losses
Mario Giannini · Mario Giannini & John Toomey – Private Equity Panel (Capital Allocators EP.309) · Apr 17, 2023 · at 54:07
Mario Giannini, CEO of Hamilton Lane, explains why he remains bullish on private credit underwriting resilience despite macroeconomic headwinds.
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“We have had more equity in companies than we've had in prior cycles. So if we think about the risk to the credit compared to what it was in The risk going forward of deals that have been done is more on the equity, I believe, than on the credit. The credit is fairly well protected, not everywhere, but generally. I don't think that dynamic is going to change, so I would say as much as I tend to be more bearish on stuff, today I'm embarrassed at all, really. I'm far more bullish on private credit than a lot of the people I hear tell me it's got to go down because it's been up.”
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