“PRIVATE CREDIT MARKET OUTLOOK”
Private credit has served an attractive investment opportunity in the post-financial crisis economy, with low yields and tight spreads prevalent in traditional liquid fixed income markets. Given substantial demand for access to credit, Alternative Lenders have helped fill the void left by traditional banks, which cut back on business lending amidst stricter regulations.
With a market expected to surpass $1 trillion by the end of 2020, that demand for private credit continues to accelerate.
But growth in the market has elicited warning signs that direct lending deal terms may be getting too loose.
With some lenders expressing concern regarding default rates amidst a souring economy with rising interest rates, will the private credit market continue to grow or will the market experience a cycle of deleveraging?
Beth Chartoff: ‘91
Blackstone GSO Capital | Senior Managing Director, Head of Business Development
Ms. Chartoff is a Senior Managing Director and Head of Investor Relations and Business Development for Blackstone’s GSO Capital Partners.
Before joining GSO Capital in 2005, Ms. Chartoff worked as a Director in Investment Banking for Bank of America Securities in the Financial Sponsors Group. Prior to Bank of America, Ms. Chartoff worked in the Investment Banking groups of Credit Suisse and Donaldson, Lufkin & Jenrette where she structured a variety of financing, M&A, and restructuring transactions in the consumer and retail and media and telecommunications industries. Ms. Chartoff is a member of the Board of Trustees of American Ballet Theater.
Ms. Chartoff graduated with a Bachelor of Arts in Economics from Cornell University and an M.B.A. from Wharton.
Ronnie Jaber: ‘03
Carlyle Global Credit | Senior Managing Director
Based in New York, Mr. Jaber is a Managing Director and Portfolio Manager in Carlyle’s Global Credit division. Mr. Jaber is responsible for investing and trading structured and opportunistic credit products, and for shaping internal market and macro strategy.
Prior to joining Carlyle, Mr. Jaber ran the structured loan business at Morgan Stanley, globally. Prior to Morgan Stanley, Mr. Jaber worked for Bank of America where he was responsible for high-yield structured credit trading. He also worked on the proprietary trading desk at Bank of America where he held Series 7 and 63 licenses.
Mr. Jaber graduated with a Bachelor of Science in engineering from Cornell University.
Blair Faulstich: ‘97 (MBA)
Benefit Street Partners | Head of Credit Origination
Based in New York, Mr. Faulstich works as Head of Credit Origination for Benefit Street Partners (BSP). Prior to joining BSP in 2011, Mr. Faulstich worked as a managing director and co-head of media and communications for Citadel Securities.
Previously, Mr. Faulstich worked as a managing director in the media and communications Investment Banking group for Merrill Lynch. Mr. Faulstich has also held various Investment Banking positions at Deutsche Bank and Alex. Brown, a division of Raymond James, in the media group. Mr. Faulstich began his career working for the accounting firm Arthur Andersen.
Mr. Faulstich graduated with a Bachelor of Arts from Principia College and an M.B.A. from Cornell University.
William Maier: ‘87
Avenue Capital Management | Senior Portfolio Manager for Credit Opportunity Fund
Mr. Maier is the Senior Portfolio Manager responsible for assisting with the direction of the investment activities of the Performing Loans Strategy.
Prior to joining Avenue in 2016, Mr. Maier spent 26 years working for Natixis where he was one of the founders of the bank’s leveraged finance business in the United States. Most recently, Mr. Maier served as Senior Managing Director and Head of Americas Coverage at Natixis with responsibility for all Investment Banking client relationships with corporations, financial Institutions and private equity sponsors. In this role, Mr. Maier chaired the bank’s Client Committee and was a member of the Senior Executive Committee of the Americas for the Corporate & Investment Bank.
Mr. Maier started his career at NatWest Bank and completed the bank’s officer training program in New York and London.
Mr. Maier graduated magna cum laude with a Bachelor of Arts in Economics from Cornell University.
Milwood Hobbs Jr.
Oaktree Capital Management | Managing Director, Strategic Credit Group
Based in New York, Mr. Hobbs sources and originates private credit opportunities across Oaktree’s expansive debt platform.
Prior to joining Oaktree in 2013, Mr. Hobbs worked as an Executive Director at Natixis Securities focused on building the high yield sales and trading franchise. Prior to Natixis, Mr. Hobbs worked five years for Goldman Sachs as a Vice President in Leveraged Finance Origination and Sales. Before joining Goldman Sachs in 2007, Mr. Hobbs worked as a director in Leveraged Finance at Deutsche Bank Securities, which he joined in 2000.
Additional experience includes regional account management focused on fleet financing at GE Capital Corporation and controller for Leveraged Finance at Bank of America.
Mr. Hobbs earned an M.B.A. from Columbia Business School and a B.S. degree in accounting from Rutgers University.
Moderator: Peter Ferrara Jr: ‘19 (MBA)
Credit Suisse | Investment Bank, Financial Sponsors Group
Peter is a 2nd year M.B.A. student at Cornell and the Founder of Cornell’s ALPHA club.
Upon graduation, Peter will be working for Credit Suisse as an Investment Banking Associate within the firm’s Financial Sponsors Group in New York.
Prior to Cornell, Peter worked both in the private sector for J.P. Morgan in New York, as well as the public sector for former U.S. Speaker of the House Paul Ryan, and the Council of Economic Advisors, which provides objective economic analysis for the Executive Office of the President.
Peter graduated with honors with a Master of Finance degree from the University of Cambridge, and graduated magna cum laude with an Economics degree from Lafayette College. During his M.B.A., Peter has studied for a semester at Tsinghua University based in Beijing, China and for a semester at Cornell Tech, based in New York City.
Peter is a Toigo Fellow, Consortium Fellow, and Management Leadership for Tomorrow Fellow.
Moderator: Aaron Kirsch: ‘20 (MBA)
Credit Suisse | Investment Bank, Financial Sponsors Group
Aaron is a 1st year MBA student at Cornell and Head of Private Credit for Cornell’s ALPHA club, as well as VP of Investment Banking for Cornell’s High-Yield & Restructuring Club.
Prior to Cornell, Aaron worked for Barrings Alternative Investments, Capital One, and State Street and graduated cum laude with an economics degree from Bryant University.
Aaron is a CFA charter holder.
This summer, Aaron will be working for Credit Suisse’s Investment Banking Division as a Summer Associate within the firm’s Financial Sponsors Group in New York.