Bloomberg Quotes Ranesh Ramanathan on SVB Failure
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For its article “Eroding Confidence in Banks Has Private Lenders Ready to Pounce,” Bloomberg quoted Akin special situations & private credit practice co-head Ranesh Ramanathan. The article looks at how the failure of Silicon Valley Bank has created openings for private credit firms to win loan deals with entrepreneurs and venture capitalists.
Said Ranesh, “SVB is a canary in the coal mine, not for bank failures but for how borrowers look to the security of their lenders. We got many calls over the weekend from firms dependent on the banking system looking for lenders in the private credit space.”
The article notes that direct lenders tend to be more protected from sudden withdrawals. He noted, “This more lightly regulated industry is actually more stable than the highly regulated industry.”
