In a recent fireside chat, Pedro Tavares, Founder and CEO of Altimapa Capital, shared his insights on the evolving landscape of private debt and credit funds. Here are the key takeaways from the conversation:

Background and Market Trends: Private debt has become a mainstream investment option, with borrowers and advisors gaining a better understanding of the space. The market has matured, with pricing conversations no longer a surprise, and the gap between bank funding and private funding has narrowed. Consolidation has increased, with a few key players dominating the market.

Role of Intermediaries: Intermediaries play a crucial role in bridging the gap between lenders and borrowers, providing expertise and facilitating deals.

Growth of Sponsor-less Transactions:  The non-private equity-backed (sponsor-less) space has seen significant growth, with Altimapa focusing on this area. The firm has seen an increase in requests from private equity firms to engage in refinancing and portfolio company discussions.

Impact of Technology: Technology is expected to change the way lending decisions are made, with AI potentially encroaching on the $20-30 million deal range. Structuring and preparation of deals will become more automated, freeing up time for more strategic activities. The use of APIs and automation may alter the role of intermediaries, potentially reducing the need for human intervention in certain aspects of the deal-making process.

Altimapa’s Focus Areas: The firm is bullish on the corporate lending space, particularly in the UK, where there has been a lack of corporate activity in recent years. Altimapa is also exploring opportunities in risk transfer and specialty finance.

Brand Vision: In three to five years, Altimapa aims to be synonymous with enabling business to happen, making it easier and smoother for clients to access capital and achieve their goals.

Overall, the conversation highlighted the ongoing evolution of the private debt market, the importance of intermediaries, and the potential impact of technology on the industry.

Key timestamps:

00:08: Introduction
00:42: Background of Altimapa
02:04: Mission and Rationale
02:47: Serving the Needs of Lenders and Borrowers
04:10: Interest of Lenders and Banks
05:40: Role of Intermediaries
06:21: Evolution of Private Debt Market
08:11: Market Consolidation
08:56: Role of Intermediaries in the Future
11:56: Specialization and Market Growth
13:56: Market Growth Predictions
15:17: Impact of Technology on the Sector
17:04: Impact of Technology on Job Roles
18:33: Automation of Deal Structuring
19:53: Future Conversations with Private Equity Firms
20:28: Challenges for Private Equity Firms
21:41: Competing with Large Private Equity Firms
22:36: Expansion and Growth in Business Areas
23:18: Corporate Activity and Real Estate Opportunities
24:23: Anticipated Growth in Corporate Space
24:41: Altimapa’s Brand Mission