In this engaging fireside chat, Giovanni Amodeo interviews Andrew Cleland-Bogle, Partner and Head of Direct Lending at Bridgepoint, on the evolving opportunities in European direct lending. Here are the key topics discussed:

Andrew’s Background in Restructuring: Andrew shared his experience in restructuring advisory with firms like Houlihan Lokey and Close Brothers. His insights stem from over 20 years of working across different financial cycles, including the dot-com bust and the global financial crisis (GFC).

The Rise of Direct Lending in Europe: Andrew highlighted how the GFC led to the decline of bank-driven financing and the rise of direct lending, which has since grown significantly across Europe, particularly in mid-market deals.

Current Market Trends: There has been a slight decline in leverage multiples and a compression in pricing due to competition. Factors influencing these shifts include increased base rates and capital returning to the large-cap space, though overall portfolio resilience remains strong.

Sponsor vs. Sponsor-less Markets: Andrew noted the dominance of sponsor-backed deals in direct lending and emphasized that the sponsor-less market, though promising, requires significant infrastructure to capture at scale.

Emerging Opportunities in Private Credit: Andrew discussed the potential growth of secondaries and NAV financings, noting that the private credit space will look vastly different in 5–10 years as these areas evolve.

Junior Debt and Leverage Strategies: The chat closed with Andrew’s bullish stance on junior debt, particularly in the form of non-cash pay structures, which he sees as a natural fit for the current stage of the economic cycle.

Key timestamps:

00:09 Introduction to the Fireside Chat
00:41 Exploring Andrew’s Background
01:24 Current Landscape of Direct Lending
03:27 Opportunities in Large Cap Direct Lending
05:24 Defining Market Segments in Direct Lending
08:56 Market Trends: Platform Deals vs. Add-Ons
14:10 Impact of Rising Interest Rates on Existing Deals
15:52 Interest Cover and Debt Service Analysis
16:35 Trends in Deal Financing and Leverage
17:10 Recent Changes in Leverage Multiples
17:32 Conclusion and Final Questions