On Investors’ Minds - APAC Edition VIDEO: How to evaluate private credit risks?
Mar 17, 2026
Brian Coleman, Co-Head of Investments in Private Credit Solutions at J.P. Morgan Asset Management, brings deep experience in credit investing and direct lending. He explains private credit's rise after bank retrenchment. The conversation tackles capital flows and spread pressure, asset-backed finance as an alternative, software loan and AI risks, and where distressed or special situations can add value.
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Brian's Distressed Debt Origin Story
- Brian Coleman joined JPMorgan 25 years ago and focused on distressed debt after the global financial crisis, learning from widespread pre-crisis mistakes.
- That period taught him underwriting lessons and led to a long focus on private credit as banks retreated post-GFC.
What Private Credit Actually Is
- Private credit is lending by non-bank institutions via privately negotiated, held-to-maturity loans rather than traded public issuance.
- It grew after the GFC as banks faced higher capital charges, creating a gap that private lenders filled and offering yield pickup vs low-yield fixed income.
Too Much Money Chasing Direct Lending
- Heavy inflows have concentrated in direct lending and retail channels, creating supply-demand imbalances and pressure on spreads and documentation.
- Muted M&A activity since 2022 has reduced deal flow, intensifying competition for transactions in parts of the market.