In a recent interview published in the Private Debt Investor’s 2025 Mid-Market Lending report, Michael Occi, President of Morgan Stanley Private Credit's BDCs, discussed the evolving landscape of direct lending. Occi highlighted how direct lending has stepped in to fill the void left by traditional banks in mid-market lending, providing solid risk-adjusted returns while maintaining strong creditor protections. He also addressed the effects of recent economic volatility and tariff-related challenges on deal flow, emphasizing the sector's adaptability and potential for growth.
Morgan Stanley Private Credit is equipped with a flexible capital base that allows them to support various financings with tailored approaches for each investment profile. The team's primary geographical focus is on the United States and Western Europe, targeting both sponsored and non-sponsored companies. Their expertise spans across LBOs, acquisitions, growth capital, refinancings, recapitalizations, complex situations, among others.
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Alternative investments often have higher fees and expenses than other vehicles which can lower returns. They are typically unregulated compared to mutual funds and do not provide periodic pricing or valuation information to investors. Thus, these strategies may not suit every investor's circumstances.
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