The LFI Levered Lines Podcast

An In-depth discussion with Carlyle Partner, Lauren Basmadjian

This week on Levered Lines, host Krista Giovacco speaks with Brian Garfield and Lucas Weiss from Lincoln International's Portfolio Valuation and Opinions Practice to discuss private credit market dynamics heading into 2026. They discuss deal making momentum with transaction multiples exceeding 2021 peak levels and the outlook for continued M&A activity alongside robust refinancing volume. The conversation covers portfolio company fundamental performance with over half growing EBITDA, borrower-friendly market conditions driven by substantial private credit dry powder, spread compression trends, and junior debt capital stack normalization. Key themes include the impact of withdrawn leverage lending guidelines on bank and direct lender competition, AI's potential influence on software underwriting dynamics, management team optimism with 8-10% growth projections, tactical positioning in subordinated debt markets, and challenges addressing underperforming companies and aged portfolio exits in sponsor funds.

Join Dagmara Michalczuk at the European Private Credit Conference on Direct Lending

This week on Levered Lines, host Kerstin Kubanek speaks with Dagmara Michalczuk, Co-Chief Investment Officer at Tetragon Credit Partners, ahead of the Deal Catalyst European Direct Lending Conference. They discuss CLO market dynamics in 2026, including spread compression reaching post-financial crisis tights and the outlook for refinancing and reset activity. The conversation covers CLO equity arbitrage opportunities, tactical positioning strategies, loan repricing trends, and portfolio quality amid micro cycles in the market. Key themes include sector-specific concerns around software and AI disruption, chemicals, autos, building products, as well as evolving restructuring trends, liability management exercises, cross-border litigation developments, and challenges in manager selection.

This week on Levered Lines, host Krista Giovacco speaks with Kyle Brown, CEO of Trinity Capital, about the outlook for private credit in 2026. They discuss Trinity’s internally managed BDC model, record investment activity, and why lower middle‑market lending continues to generate attractive returns. The conversation covers underwriting discipline, loss mitigation, liquidity concerns in private credit, and valuation transparency, as well as key growth themes including AI, robotics, reshoring‑driven CapEx, data centers, and energy. 

This week, host Kerstin Kubanek and Michael Carruthers of Blackstone delve into the outlook for private credit and M&A activity in 2026, exploring deal flow momentum, valuation resets, spread dynamics, sector trends, and geopolitical influences on financing. The conversation covers improving market conditions, margin pressures, the role of liquid versus private credit, and the growing importance of sectors such as software, business services, healthcare, and AI‑driven infrastructure. They also touch on retail investor access and evolving fund structures. Tune in for insights that will help you navigate the shifting private credit landscape in 2026. 

This week, host Andrew Hedlund sits down with Jess Larsen of Briarcliffe Credit Partners  to break down the shifting dynamics in private credit as 2026 gets underway. They unpack the impact of slowing U.S. growth, Europe’s accelerating investment cycle, and the rising demand from LPs for diversification. The discussion covers direct lending pressure points, the resurgence of specialty finance and ABL, and why Europe’s market inefficiencies are creating new opportunities for investors. Tune in for the insights you need to navigate private credit in 2026. 

Season 3, Episode 2

On this episode of LFI Levered Lines, host Steve Miller speaks with Joe Rotondo, Senior Portfolio Manager at Mid-Ocean Credit Partners, about the firm's defensive investment philosophy driving strong performance across their $5 billion CLO platform built over three and a half years. The conversation explores the anticipated resurgence of LBO and M&A-driven loan issuance, with the forward calendar reaching $46 billion—the highest in three years—supported by three converging factors: declining rates reducing borrowing costs, stable macro conditions, and sponsors facing pressure to monetize portfolio companies and return capital to LPs. Joe discusses the robust CLO issuance outlook for 2026, with Triple-A spreads tightening into the very high teens and very low 120s range, alongside significant opportunities for refis and resets as deals from late 2023 and 2024 roll off their two-year non-call periods—potentially tightening liability spreads by 50 basis points with benefits flowing directly to equity investors.

The discussion addresses growing market bifurcation, with 52% of loans trading above par as managers seek "sleep at night" names while distressed credits face heightened volatility from both credit risk and potential liability management exercises. Joe explains how LMEs over the past 5-6 years have made credit selection and deep-dive covenant analysis more critical than ever. The conversation also examines AI's dual impact on the loan market—distinguishing between perceived and real disintermediation risk—while noting the positive potential of AI adoption to improve operational efficiency for borrowers.

Season 3, Episode 1 

Join LFFM London: Wednesday, 28 January 2026 | British Museum | 7pm Leveraged Finance Fights Melanoma (LFFM) London brings together leaders from the European leveraged finance and private credit community to raise critical funds for cutting-edge melanoma research. Learn more: https://www.curemelanoma.org/get-involved/events/leveraged-finance-fights-melanoma

Season 2, Episode 9

On this episode of LFI Levered Lines, host Kerstin Kubanek is joined by Nick Baldwin from Lincoln International to examine the rising stress indicators in Europe's private credit market. The conversation explores the record 3.9% covenant default rate in Q3 2025, with 3.4% of companies on covenant holidays and a significant increase in firms with less than 10% covenant headroom. Nick provides detailed analysis on the surge in PIK interest to 17.5%, distinguishing between "good PIK" structured at origination versus "bad PIK" introduced through amendments to address liquidity challenges. The discussion highlights sector-specific vulnerabilities in technology—particularly software and digital media companies from 2021-2022 vintages—alongside persistent consumer sector stress. The panel examines spread compression trends moving down-market, competitive dynamics in direct lending, and the potential impact of increasing M&A pipelines on 2026 market conditions. Essential listening for private credit professionals navigating evolving credit quality and lending dynamics.

Season 2, Episode 8 

On this episode of LFI Levered Lines, host Matt Dickinson is joined by Tim Newey, Sarah Paterson, and Ryan Perkins for an expert panel discussion on the evolution and challenges of the UK’s Part 26A restructuring plan. The conversation explores landmark court decisions including Thames Water, Petrofac, Virgin Active, and Poundland, and their impact on negotiation requirements, creditor treatment, and evidentiary standards for restructuring plans. The panelists dissect the growing pains faced by the restructuring tool, compare UK practices to alternatives like Chapter 11 and out-of-court LMEs, and discuss procedural improvements such as flexible modification processes and judicial continuity. This episode delivers practical insights on legal innovations and market dynamics, making it essential listening for professionals navigating complex UK corporate restructurings.