Midmarket loan providers dealing with stiff competition has to find imaginative methods to win deals, stated loaning executives at iGlobal Forums Specialized Financing Top in New York Thursday.
Although federal leveraged financing regulations on banks have been a boon for nonbank loan providers, monetary institutions-such as private equity credit arms, business development business and boutique lenders-are looking for methods to stand apart.
Panelists said that to remain in the game, they need to be versatile.
You needhave to have a specific niche today and a diversified capital base, said Jason van Dussen, a managing director who heads capital markets at Golub Capital. Whether it is funding a little companya bank loan or a midmarket-size leveraged buyout, everybody is searching for flexibility to grow to get the returns for investors, he said.
Forming relationships with companies and supplying a variety of products- whether its little or huge centers, growth equity, or endeavorequity capital – are other ways to obtain an edge, according to Mr. van Dussen.
Outside of [asset-based loans] we can do just about anything.” stated Mr. van Dussen.” I think thats the special thing thats allowed us to grow.
Another method to remain competitive is to simply discover markets in requirement of more capital.
Dev Gopalan, a director who heads US private credit at KKR Possession Management, part of Kohlberg Kravis Roberts amp; Co., pointed to underserved markets where banks have been pulling back, consisting of lending against tough possessions such as aircraft, student loans or customer finance and mortgages.
These are markets that have a capital void to fill, he stated.
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