Opportunistic Credit: Private Debt Strategies with Morgan Stanley

LFI Levered Lines Podcast | Season 3, Episode 18

This Levered Lines episode explores how opportunistic credit is reshaping private markets as higher rates, longer hold periods, and shifting macro conditions drive demand for more flexible capital solutions. Krista Giovacco is joined by Ashwin Krishnan to discuss how private credit has evolved beyond direct lending, why structured and hybrid capital is gaining traction, and how these solutions help private equity firms manage elevated entry valuations while returning capital to LPs.
They also examine the impact of “higher for longer” rates, rising hybrid structures, and changing supply-demand dynamics across the asset class, offering clear insights into how investors and borrowers can navigate an increasingly complex credit landscape.

Watch on YouTube:

Speakers:

Krista Giovacco, Senior Reporter, LevFin Insights
Ashwin Krishnan, Head of North America Private Credit, Morgan Stanley Investment Management

Timestamps:

00:00 Introduction to Opportunistic Credit
02:42 The Impact of Interest Rates on Private Equity
05:29 The Rise of Non-Sponsored Activity in Private Credit
07:58 Understanding Hybrid Structures in Private Credit
10:57 Structuring Deals: A Solutions-Oriented Approach
12:02 Retail Retreat from Private Credit and Its Implications
16:18 Looking Ahead: The Future of Opportunistic Credit