Investor Presentaiton
MARKET OPPORTUNITY
We believe private credit is well positioned to navigate the current market environment
MACROECONOMIC ENVIRONMENT
PRIVATE CREDIT ATTRIBUTES TO NAVIGATE CURRENT MARKET
Slow growth and high interest rates
• Credit is less susceptible to changes in enterprise valuations as compared to equity
• Senior secured loans have priority of repayment in the capital structure to
maximize value
Floating rate loans have coupons that increase with rising interest rates
Elevated inflation
Private credit is typically not managed versus a benchmark, providing an ability
to invest in companies that generate high free cash flow, have defensible
business models and are in less cyclical sectors
Potential for higher default cycle
Greater technical market dynamics
Private credit can potentially benefit from structural advantages given the ability to
have greater influence in the structuring of terms and pricing in loan documents
• Loan tranche control provides greater influence to drive outcomes
.
Financial covenants tie lenders to near-term company financial performance,
providing lenders with an ability to potentially mitigate risk early, if needed
We believe private credit has greater insulation from technical market dynamics
that are more prevalent in public markets given the private nature of loans
Valuations driven by company fundamental performance, among other inputs
BainCapital
CREDIT
Based on Bain Capital Credit's view as of December 2023. Please refer to the glossary of terms in the appendix on slide 29 for definitions of
certain terms.
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