NEW YORK (Reuters) – The fallout of SVB Financial Group (SIVB.O) has already cut lending, John Connaughton, a partner at Bain Capital, said in an interview with Reuters on Thursday. It will weigh heavily on banks that have
Connaughton said private equity firms like Bain are opening up direct lending units to secure deal debt as traditional bank lending is in short supply as banks adapt to rapidly rising interest rates. We are looking at our peers. This is despite the fact that borrowing from direct lenders is much more expensive than bank loans.
Connaughton said in an interview with Reuters Newsmaker that the banking sector is strong enough to withstand a failure of the SVB, but that a bank failure would add to the caution banks have shown.
“The question that is being raised with Silicon Valley Bank is where is the liability-asset match…where is it all and what liquidity concerns are there?” Connaughton said. Stated.
Founded in 1984, Boston-based Bain Capital is one of the world’s largest investment firms with over $160 billion in assets under management across private equity, credit, real estate, venture capital, life sciences, cryptocurrency and blockchain investments. grew into one.
Reported by Chibuike Og of New York.Edited by Anna Driver
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