Howard Widra on private credit growth
From In The Ring With Rob: Exploring the Golden Age of Private Credit | Howard Widra & Jurgen van Vuuren · · Nicola Wealth
“Private credit has grown because banks have pulled back from lending due to increased regulation and recent banking issues, creating a secular and sustainable shift where private credit takes significant market share from banks and syndicated loans.”
On , Howard Widra, Executive Chairman of the Board at MIDCAP FINANCIAL INVSMT CORP, spoke about private credit growth during In The Ring With Rob: Exploring the Golden Age of Private Credit | Howard Widra & Jurgen van Vuuren on Nicola Wealth.
About Howard Widra
In a September 2024 podcast, Howard Widra discussed the state of the private credit market. He described Midcap Financial as a broad-based commercial finance company providing senior debt across the middle market, including leveraged lending, asset-based lending, and life sciences lending. Widra noted that Apollo conducts most of its middle market senior lending through Midcap, and that his role has expanded to include direct origination of private credit at Apollo. He stated that Midcap closed on its equity investment the day Lehman failed in 2008, which he described as a challenging environment but a good time to start a finance company. Widra said he agreed that this is the "golden age of private credit," attributing the growth to banks pulling back from lending due to increased regulation and recent banking issues. He described the shift as secular and sustainable, with private credit taking market share from banks and syndicated loans. Widra noted that private credit now finances larger businesses, including those with over a billion dollars in annual revenue. He characterized the market as competitive despite concentration among large firms, and predicted that any expected credit cycle shakeout may be more benign than anticipated, with the Federal Reserve likely remaining accommodative enough to prevent a recession.