BDC Veteran Expects Private Credit Fund Stress as Banks Pull Back

About this episode

Michael Gross discusses the impact of bank retreats from private credit on business development companies and the challenges they face.

A bank retreat from private credit piles pressure on business development companies already reeling from a wave of redemptions, according to SLR Investment Corp. “You’re starting to see banks get nervous and start to pull back,” the BDC’s co-Chief Executive Officer Michael Gross tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in this episode of the Credit Edge podcast. “It’s going to increase people’s cost of capital, which will make it harder for people to invest efficiently,” said Gross, who led Apollo Investment Corporation, part of the early wave of BDCs, before starting SLR in 2006. They also discuss software distress, how to avoid fraud and why BDCs still work for retail investors. See omnystudio.com/listener for privacy information.

People in this episode

Hosts: James Crombie, Arnold Kakuda

Guest: Michael Gross

Topics covered

• private credit
• business development companies
• banking
• investment
• financial stress

Keywords

• private credit
• business development companies
• bank retreat
• cost of capital
• investment efficiency

Mentioned in this episode

Organizations: SLR Investment Corp., Apollo Investment Corporation, Bloomberg News, Bloomberg Intelligence

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