Private Credit Market Master Class – Trends, Challenges, and Opportunities in the Private Credit Market

The size of the private credit market at the start of 2024 was approximately $1.5 trillion and is estimated to grow to $2.8 trillion by 2028. Attractive yields, downside protection, flexible financing — who wouldn’t want that? Especially now, when liquidity is so constrained.

Our Hong Kong lawyers Scott Peterman and Anson Chan will discuss the different types of private credit financing, pros and cons associated with private credit financing, and certain key terms and lender protections in private credit documentation. Examples of typical key terms and downside protections include financial maintenance covenants, EBITDA addbacks and covenant carveouts, J Crew blockers, other liability management restrictive measures, and events of default.

The one-hour master class will cover the below topics:   

• Overview of the current private credit market
• Types of private credit financing
• Key advantages and risks in private credit financing
• Ways that private credit funds use leverage
• Certain key terms and protections in private credit financing
• Key takeaways