Drew McKnight
Showing 1–3 of 3 transcripts.
- Milken Institute1h 3m
Credit Outlook | Global Conference 2025
Michael Milken, Lee Kruter, Drew McKnight, Purnima Puri, James Reynolds, Christian Stracke
Driven by the 2023 banking retrenchment and rising institutional demand for yield, major asset managers including PIMCO, Fortress, and Goldman Sachs are shifting capital from traditional lending to non-investment-grade private credit and alternative financing structures. Panelists identify significant growth opportunities in undervalued asset-based credit, data center infrastructure, and expanding markets in Europe, Latin America, and the Middle East, while emphasizing defensive strategies focused on recovery rates rather than default probabilities. Despite regulatory uncertainties and untested default cycles, experts project the sector will scale significantly to fill the void left by contracting bank balance sheets.
- Milken Institute41 min
The Private Credit Playbook| Middle East and Africa Summit 2024
William Kelly, Carmen Alonso, Mathew Douglass, Stephen J. Ketchum, Drew McKnight, Bill Kelly, Matt Douglas, Steve Ketchum
The private credit market, currently valued at $2 trillion, is projected to double by 2030 as it absorbs capital from shrinking bank balance sheets while expanding into niche asset classes like litigation and intellectual property finance. Institutional investors are increasingly utilizing interval funds and Business Development Companies to access high-yield opportunities in mid-market and Latin American sectors, though rising pick-up risks and a looming maturity wall present distinct challenges. Despite concerns over capital oversupply, industry experts maintain that the asset class offers structural stability compared to traditional banking, with substantial undrawn equity capital poised to drive continued growth through the next decade.
- Milken Institute1h 1m
Banks Stepping Out, Private Credit Stepping In | Milken Institute Global Conference 2024
John Bowman, Jeffrey Aronson, Marianna Fassinotti, Gregory Geiling, Peter Gleysteen, Drew McKnight
The private credit market has evolved from a niche financing tool into a $2.2 trillion "big tent" asset class, driven primarily by regulatory pressures like the Basel Endgame that force banks to offload capital requirements while retaining origination roles. This structural shift has fostered a complementary partnership model where global banks leverage private capital for risk transfer and flexibility, resulting in robust credit quality despite a temporary pause in corporate activity due to high interest rates. As the industry navigates the next economic cycle, focus is shifting toward downside protection, specialized asset management, and the emerging secondary market to address the sector's lack of full stress testing since the Global Financial Crisis.