Jess Larsen: “Investors are seeking sector specialization”

April 1, 2022

Private Debt Investor: Getting the mid-market mix right

Founder & CEO Jess Larsen spoke with Private Debt Investor on the benefits of sector specialization for private credit funds. In particular, he said, “private credit is much more than direct lending. When you are no longer simply underwriting a sponsor with an EBITDA that you are happy with, you can really benefit from a deeper knowledge of the market participants and the rules and regulations in a sector.” He went on to be quoted, “If you are a direct lender with a sponsor-led strategy, then there is not a lot of premium for being sector-specific, but if you’re taking more complexity into your lending and offering credit directly to non-sponsored borrowers, then you definitely have an advantage if you are sector focused. We are seeing a growing proportion of the market outside direct lending taking that approach.”

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