Partners Capital’s Bewley Eyes Rising Distress in Private Credit

Partners Capital is eyeing a surge of distressed opportunities within the $1.7 trillion private credit market, arguing that a weakening of lending standards over the past several years is creating chances to rework some companies’ debt loads.

Private credit firms have reported solid returns, fueled by a rise in interest rates and abundance of capital. But signs of divergence are beginning to show, thanks to an increase in borrower-friendly terms from 2019 through 2021 and new entrants in the market, according to Emma Bewley, partner and head of credit at Partners Capital.

“We’re starting to look at distressed again ...