Banks are attempting to gain a foothold in trading private credit, though this has been challenging for traditional lenders, according to Bloomberg. Haynes Boone Partner Greg Kramer spoke to the news outlet about what this will look like.
In most cases, “it’s going to be more direct from buyer to seller, which is probably going to be two different private credit funds that have the history of doing business with each other,” said Greg Kramer, partner at law firm Haynes Boone, adding banks are rarely seen as brokers in secondary private credit deals.
If a loan is performing, lenders might want to sell a piece to another fund to reduce risk or concentration, Kramer said, “or if they want to even just create liquidity because there are other deals that they want to do.”
Read the full Bloomberg article here.
