Podcast: The U.S. Lower Middle Market & Recession Resilient Underwriting

Natalie Garcia, Managing Director & Head of Underwriting at Deerpath Capital, stopped by The Credit Clubhouse to discuss the U.S. lower middle market, the impact of volatility on underwriting, and more.

Key topics covered:
– Macroeconomic conditions & underwriting
– Finding the optimal balance between yield and protection
– The impact of potential rate cuts
– The most resilient & most vulnerable sectors in the lower middle market
– Why the lower middle market is so appealing
– Key trends in covenant structuring
– Delivering customized facilities tailored to sponsors and borrowers
– Monitoring portfolio companies post-close to identify early warning signals
– Preparing for recession scenarios & an uptick in M&A activity
– AI’s potential impact on lower middle market lending

Watch on YouTube here

Listen here

This podcast provides general information intended solely for educational purposes. It is not intended to serve as a recommendation or endorsement of any specific investment product, strategy, or financial plan. By accessing this content, you acknowledge its informational nature. If any examples were presented they are hypothetical and used for illustrative purposes only. Neither Deerpath Capital Management, LP nor its affiliates or representatives are advising any individual to take a particular action. Before making any financial or investment decisions, individuals should consult with qualified professionals — including financial, legal, and tax advisors — who can assess their unique circumstances. The views expressed by the individual(s) in this podcast are their own.