Private credit funds in the secondary market are outperforming traditional banks in the current environment due to their ability to close transactions faster and offer larger amounts of capital. Private credit has solidified itself as an alternative option to banks.

In a recent interview with The Deal, Monomoy’s Head of Credit Strategies, David Robbins, shares his insights on today’s private credit market and the firm’s approach to buying debt.

In September, Monomoy announced its second credit opportunities fund with $300 million in total commitments and has since begun deploying capital in several investments. “We are able to deploy capital regardless of the backdrop but a macro environment like today definitely makes our opportunity set very broad,” says Robbins.

Monomoy Credit Opportunities Fund II (MCOF II) will continue to build on the firm’s established credit strategy, focusing on debt investments in the secondary market for first lien term loans and senior secured notes of lower-middle-market and middle-market businesses in diversified end-markets across the North American industrial, distribution and consumer sectors.

“We’re getting paid an appropriate rate of return or better to take that risk that over the next couple of years, the business will recover to a point where either the debt can be refinanced, or the underlying business can be sold for value in excess of our debt,” Robbins shares.

Read the full interview with The Deal here.