The Cred Convos

Are you new to rated note feeders? In this episode of The Cred Convos, John McGrath, Dechert’s head of European Structured Finance, sits down with fellow partner Arina Lekhel, co-head of Dechert’s Rated Feeders practice, to demystify horizontal and vertical structures – what they are, why investors choose one over the other, and how each impacts regulation, documentation, ratings and execution.

The EU's Alternative Investment Fund Managers Directive II (AIFMD II) goes into effect on April 16, 2026. How are credit managers preparing for these new regulatory requirements that impact funds managed by EU managers and, in certain cases, EU funds managed by non-EU managers? In this installment of The Cred Convos, financial services partners Mikhaelle Schiappacasse and Katie Carter dive into the policy behind the regulations, additional requirements that apply to loan-originating funds, liquidity management tools and more.

What are structured options for direct rated note feeders into permanent capital vehicles, including closed-end funds and business development companies? In this edition of The Cred Convos, Dechert partners Jon Gaynor, Ross MacConnell and Paul Stevens continue their discussion on rated note feeders, highlighting the primary structural approaches, critical Investment Company Act considerations, prohibited affiliate transaction rules and the governance and modeling complexities that sponsors must navigate when pursuing these financing solutions.

How are closed-end funds, including interval funds and tender-offer funds, and business development companies leveraging rated note structures to access new pools of institutional capital? In this edition of The Cred Convos, Dechert partners Jon Gaynor, Ross MacConnell and Paul Stevens explore the growing use of rated note structures in private credit, including the key legal and regulatory considerations and practical insights for fund managers evaluating this capital-raising strategy.

What are the biggest structuring challenges for rated note feeders with regard to the EU's securitization regime? In this edition of Dechert’s The Cred Convos, partners Arina Lekhel and John McGrath explore the EU’s broad securitization definition and what it means for rated note funds. They examine how investor types drive outcomes, why horizontal tranching and waterfalls can trigger the regime, techniques to mitigate risk and more.

How are recent matching adjustment regulatory changes impacting the UK insurance capital space? In this edition of The Cred Convos, Dechert partners Arina Lekhel and John McGrath unpack the UK’s matching adjustment regime and what it means for rated note feeder structures. Their conversation covers the core design features MA investors expect, recent regulatory tweaks and the practical changes feeders need to attract UK insurers, including no-interest deferral, liquidity wrappers, certainty around capital calls and soft commitments and Solvency II make-whole mechanics.

What primary direct lending strategies are being employed by top asset management firms to help clients stay ahead in 2025? In a sit-down The Cred Convos discussion at the Private Credit Summit in London, Dechert partner Christopher Gardner and Pemberton Asset Management Partner, Global Head of Origination and Co-Head of Direct Lending Eric Capp explore Pemberton’s innovative direct lending offerings and how private credit has proven resilient through multiple cycles.

How does private credit stack up against other funding sources at the time of the deal and over the life of the loan? At the Private Credit Summit in London, Ares partner Allan Nielsen explored the diversity of capital sources in private credit, the importance of scale and consolidation in seeking opportunities in the market and why successful wealth managers in private credit are true partners – not just capital providers – to their clients.

What went into Barings’ groundbreaking launch of the EU’s first private credit CLO? Dechert partner Aaron Scott sat down with Barings Managing Director Joe Evanchick to discuss the motivations, challenges and successful strategies that went into this unique deal as well as how this innovative asset class offers European investors new avenues in private credit and the intricacies of working with rating agencies.

Risk is on the move, and insurers are becoming increasingly interested in private credit and fund financing. In this edition of Dechert’s The Cred Convos, Moody’s Ratings Global Head of Private Credit Marc Pinto explores key private credit and insurance trends, including rapid innovations in fund structures and methodologies, the increased use of NAV loans and subscriptions facilities, the importance of transparency in securitizations to accommodate market growth and more.

How are recent changes to the Matching Adjustment regime in the UK affecting rated note structures for insurers? At the Private Credit Summit in London, Dechert partner John McGrath spoke with Ares Management Corporation’s Liya Pozdeeva to get her perspective on how changes to the matching adjustment framework might benefit asset-based finance and CLOs in particular.

What’s driving CLO structure on the liability and portfolio sides? At the Private Credit Summit in London, Dechert partner Aaron Scott was joined by KBRA Senior Director of Structured Credit Gabriele Gramazio to discuss the key differences between private credit CLOs and broadly syndicated CLOs from a rating agency perspective as well as the variations in loan protection approaches across markets.

More investors are looking to gain exposure to private credit, so how are leading firms responding to this increase in demand? At the Private Credit Summit in London, Bain Capital Managing Director Joseph Buchheit joined Dechert partner Jay Alicandri to discuss the innovative products Bain offers.

How are U.S. tariffs, economic shifts and geopolitical unpredictability affecting M&A activity and, in turn, private credit activity in 2025? At the Private Credit Summit in London, Dechert partner Chris Gardner was joined by Pemberton Asset Management Partner, Global Head of Origination and Co-Head of Direct Lending Eric Capp to highlight how European middle market M&A remains adaptable amid these challenges, driven by sector consolidation by European private equity investments.

What’s next for rated products and the insurance sector? Ares Management Corporation’s Liya Pozdeeva discusses the rise of rated note fund structures for the insurance sector, including how this trend is tracking in the UK and Europe, as well as regulatory considerations.

How are resilience, growth and innovation shaping the future of the private credit industry? Arcmont Asset Management Partner and Co-CIO Mattis Poetter discusses private credit’s unique journey since Arcmont was established in 2011, the technological advancements that have helped identify trends early, private credit investors’ need for long-term sustainability and much more.

Private credit is more than just direct lending, so what other industry opportunities should asset managers hone in on? Dan Pietrzak, KKR’s Global Head of Private Credit, highlights the estimated US$6.1 trillion asset-based finance market, growth factors in the private debt market, positive fundraising outcomes in private credit and how businesses are preparing for potential headwinds in the years to come.

What trends are driving the private credit industry in Europe? Mike Dennis, Co-Head of European Credit at Ares Management, highlights how private credit is catching up with private equity in European markets, the increasing retail and institutional appetite for the asset class, and private credit’s “huge runway for growth” in Europe.

In this insightful edition of The Cred Convos, Dechert partner Mikhaelle Schiappacasse sits down with Jeff Cohen, Head of ESG and Sustainability at Oak Hill Advisors and the Acting Vice Chair of the ESG IDP to discuss the project’s development, frameworks and standards informing IDP, the value it brings to the market, how others can support the initiative and much more.

The private credit industry has grown substantially over the past several decades – nearly a $2 trillion market in 2024 – but what key factors are driving its evolution? In this edition of The Cred Convos, Grishma Parekh, co-head of North American core senior lending at HPS Investment Partners, highlights what makes private credit increasingly appealing to investors and lenders.

In an insightful edition of The Cred Convos, Golub Capital President David Golub discusses key growth trends to watch in the world of lending to private equity-backed companies in the coming decade.