Credit Crunch: Adams Street’s Diehl on Trends in Private Capital

“I think it’s very difficult to predict a world where you might go back to zero interest rates. And so that all portends that there’s likely to be an uptick in default rates,” says Jeff Diehl, managing partner and head of investments at Adams Street, discussing potential challenges awaiting direct lenders after the strong growth of the asset class. Diehl joins Bloomberg Intelligence’s Noel Hebert on this episode of the Credit Crunch podcast to talk about Adams Street’s approach to private credit managers, a focus on sectors exposed to disruption, how having private equity (PE) and venture capital exposures creates synergies. They also discuss private market secondaries, how hyper-scaling in parts of the direct-lending market may add returns risk and the outlook for PE exit activity. The information presented herein is provided for informational and educational purposes only; it is not investment advice, nor is it an offer or sale of, or a recommendation related to, the securities of any fund or company, investment products, or investment advice. This podcast is a recording of extemporaneous remarks delivered in an informal, conversational format.  The comments are high-level in nature, represent the subjective impression of the speaker, may be forward-looking and are subject to change.  Past performance is not a guarantee of future results and there can be no guarantee against a loss, including a complete loss, of capital.”