The one red flag in private credit investing

In our previous video, Andrew Lockhart of Metrics Credit Partners provided a short 101 of what private credit investing entails. In this episode, he digs a bit deeper and discusses what it takes to originate a private loan transaction and how he assesses the ability of borrowers to repay debt. Above all else, the one red flag Andrew looks for when deciding to lend company is the quality of management.

“What’s the experience, what’s the skillset of the people involved, do they have the right commercial acumen to deliver growth in earnings and really deliver on their strategic intent?”

Find out more about the inner workings of what drives sustainable private credit returns and the litmus test borrowers go through.

 

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Livewire – February 19, 2020