Jonathan Lavine, Co-Managing Partner at Bain Capital, is predicting more M&A activity in the booming credit market space as smaller lending firms look to grow their businesses to benefit from economies of scale, according to a report by Bloomberg.
The report quotes Lavine, who is also CIO of Bain Capital Credit, as saying in an interview on Thursday that despite rapid growth in the sector, bigger firms still have an advantage over their smaller rivals.
“There will be more consolidation between private credit firms, as there are so many small shops that need to scale, because it is a low-fee business,” Lavine said.
Recent consolidation deals in the sector include Nuveen’s purchase of Arcmont Asset Management, which it then combined it with its Churchill Asset Management unit to create a $60bn private debt platform, and First Sentier Investors’s acquisition of a majority stake in lender AlbaCore Capital Group.
