Kayne Senior Credit Fund III (KSCF III)
Middle Market Credit- Changes in bank regulation continue to drive this opportunity. Historically, banks have been the primary source of borrowed capital to middle market companies. However, Basel III and Dodd- Frank have made it costly for banks to invest in the middle market sector. Today, banks compose less than 15% of market participants, leaving ample room for non- banks to fill the rising demand for capital.
GFL believes that the combination of premium pricing and better performance with respect to defaults and recoveries makes private debt a compelling investment proposition. In our opinion, the factors that helped create these favorable conditions in the market for private debt are both structural and secular in nature and therefore likely to be long lasting.