“P ivate c edit is ‘t a iche alte ative a ymo e; it’s become a mai st eam fi a ci g tool that middle-ma ket compa ies eed to u de sta d,” said David Chua, co-fou de a d Ma agi g Pa t e at Post Oak G oup. “As ba ks have pulled back f om ce tai types of le di g, p ivate c edit le de s have stepped i with mo e flexible, bespoke st uctu es. Fo busi ess ow e s, that mea s mo e paths to capital, but also mo e complexity i figu i g out which path fits thei situatio , which is exactly whe e the ight adviso y elatio ship matte s most.”
P ivate c edit’s g owth has bee d ive by seve al co ve gi g facto s: ba ks et e chi g f om ce tai le di g catego ies, bo owe s i c easi gly seeki g customized st uctu ed solutio s athe tha sta da dized ba k p oducts, a d i vesto s’ o goi g sea ch fo yield i a highe -fo -lo ge i te est ate e vi o me t. What bega as p ima ily di ect co po ate le di g has si ce expa ded i to asset-backed fi a ce, i f ast uctu e debt, eal estate debt, dist essed debt, a d specialty fi a ce, givi g compa ies liquidity solutio s ac oss a much wide a ge of isk p ofiles tha we e available eve a few yea s ago.
Fo middle-ma ket busi ess ow e s, this expa sio t a slates i to eal optio ality. G owth capital, acquisitio fu di g, debt efi a ci g, a d ecapitalizatio s that might o ce have equi ed a st aightfo wa d ba k te m loa ca ow be st uctu ed th ough p ivate c edit elatio ships that offe mo e flexibility o te ms, timeli es, a d st uctu e, ofte without equi i g ow e s to give up ope atio al co t ol o dilute ow e ship the way a equity aise would.
The PwC su vey also fou d that se time t amo g p ivate c edit po tfolio ma age s emai s st o gly positive: mo e tha 80% expect to eceive i c eased capital allocatio s ove the ext 12 mo ths, with ea ly half a ticipati g g owth of mo e tha 20%. That co ti ued i flow of capital i to the asset class mea s middle-ma ket compa ies a e likely to see p ivate c edit emai a eadily available, a d i c easi gly competitive, fi a ci g optio goi g fo wa d.
“The busi esses that be efit most f om this shift a e the o es that wo k with adviso s who actually have elatio ships ac oss the p ivate c edit la dscape, ot just a list of le de s,” said Su y Bas a, Executive Di ecto of Post Oak G oup’s Capital Ma kets p actice. “As o e of the most co ected fi ms to family offices a d ve tu e capital fi ms globally, we’ e able to b i g clie ts di ectly to the capital sou ces that fit thei situatio , athe tha u i g a ge e ic p ocess a d hopi g somethi g sticks.”
Post Oak G oup‘s P ivate C edit Adviso y p actice wo ks with middle-ma ket compa ies a d i vestme t fu ds to ide tify, st uctu e, a d secu e capital f om i stitutio al sou ces, i cludi g p ivate c edit le de s, p ivate equity fi ms, family offices, a d st ategic i vesto s. That etwo k, spa i g family offices a d ve tu e capital elatio ships ac oss No th Ame ica, Eu ope, Asia, a d the Middle East, combi ed with the fi m’s sta di g as Texas’s top middle-ma ket i vestme t ba k, is ce t al to how the fi m app oaches eve y p ivate c edit ma date.
As p ivate c edit co ti ues to expa d its footp i t i middle-ma ket fi a ce, Post Oak G oup is e cou agi g busi ess ow e s evaluati g g owth capital, acquisitio fi a ci g, o efi a ci g to co side the full a ge of alte atives ow available to them, a d to wo k with adviso s who ca help them avigate a i c easi gly complex capital ma kets la dscape.
Post Oak G oup is the leadi g middle-ma ket i vestme t ba k headqua te ed i Housto , Texas. With app oximately 300 p ofessio als a d mo e tha 250 yea s of combi ed leade ship expe ie ce, the fi m has advised o ove $82 billio i t a sactio s ac oss 12 cou t ies. Recog ized as the top middle-ma ket i vestme t ba k i Texas a d widely ega ded as o e of the most co ected fi ms to family offices a d ve tu e capital fi ms globally, Post Oak G oup helps clie ts secu e i stitutio al capital th ough discipli ed, st ategic executio ac oss the full spect um of capital ma kets se vices, i cludi g p ivate c edit adviso y, p ivate placeme ts, a d fu d placeme t se vices.