Private credit has become much more popular lately. As a head of one of the top alternative investment management companies in the United States, Fortress Investment Group, Gareth Henry has seen it rise. There are a lot of things that have led to the popularization of the alternative form of credit for businesses.
When the United States faced the financial crisis of 2008, a lot of things changed in the market. Banks became a lot more hesitant to lend money to private companies in the middle market and overall. This was due to the many changes in regulations when it came to loans. Public companies also found a lot of issues related to regulations and the number of disclosures that became required made it difficult to grow. At Fortress Investment Group, Gareth Henry saw some of these problems first hand which is why he was excited when they had the chance to take their company back to private.
Gareth Henry not only has experience in the worlds of finance and investing, but he also has a strong education in mathematics which makes him able to process the numbers related to the market in a strong way. He was able to come up with sales strategies for Fortress Investment Group when it came to their private equity, credit, hedge fund, and fixed income businesses. This is why so many people are interested in hearing what he has to say about the world of private credit.
There are a lot of private credit options and Gareth Henry works to try to find the best option for their clients. Each one has a different degree of risk involved and much of this is attached to how much capital is made immediately available. One of the riskiest types of loans for small to mid-sized companies is known as mezzanine loans. The interest for this type of loan is generally high and the credit usually comes with the buyout of a company. In general, when coming up with private credit products, investment management will try to use a combination of debt and equity in order to provide the best option they can.
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