Antares Capital - Mon, 10/21/2024 - 19:42

Insights into the Fed’s interest rate action and the implications on private credit

Key Takeaways

The Fed signaled rates to gradually decline and remain higher for longer
We agree with the Fed’s base case of a soft landing for the U.S. economy. However, financial market volatility historically increases after the first rate cut which may prompt investors to consider investments like direct lending that can provide a volatility buffer
A gradual decline in interest rates will provide relief to borrowers, facilitate a rebound in M&A activity and continue to support direct lending performance

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Antares Capital

Founded in 1996, Antares is an experienced and cycle-tested alternative asset manager and a leading provider of financing for PE-backed borrowers. With one of the most seasoned teams in the industry, Antares is focused on delivering attractive risk-adjusted returns for investors and creating long term-value for stakeholders. The firm manages $71B+ of capital under management and administration as of March 31, 2024, and maintains offices in Atlanta, Chicago, Los Angeles, New York, Toronto and London.

Visit Antares at www.antares.com or follow the company on LinkedIn at http://www.linkedin.com/company/antares-capital-lp. Antares Capital is a subsidiary of Antares Holdings LP, (collectively, “Antares”). Antares Capital London Limited is an appointed representative of Langham Hall Fund Management LLP, an entity which is authorized and regulated by the Financial Conduct Authority of the UK.

Rui Yang, CFA
Insurance Solutions

John Zilko, CFA
Head of Americas Investor Coverage

280 Park Ave FL 22
New York, NY 10017
insurancesolutions@antares.com

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