AIC and Punchbowl Highlight How Private Credit Fuels Small Businesses Across America
WASHINGTON, D.C. – Punchbowl News recently hosted an event in Washington, D.C. about how private credit is supporting small businesses, jobs, and the economy.
Punchbowl News Managing Editor Heather Caygle interviewed American Investment Council President & CEO Drew Maloney, Founder & CEO of Otter Learning Chase Begor, and Rep. Beth Van Duyne (R-Texas), a member of the House Committee on Ways and Means and the House Committee on Small Business. Otter Learning, an early childhood education company, received a private credit loan from private equity firm The Riverside Company.
Private credit has stepped in to become a critical source of capital for businesses across America. The rapidly growing asset class hit a record $1.4 trillion of assets under management globally last year.
AIC President & CEO Drew Maloney discussed how private credit helps businesses grow stronger, scale, and hire employees. AIC represents two-thirds of private credit assets under management. “Post Dodd-Frank and the 2008 financial crisis, banks have had to restrict the amount of lending due to the regulatory burdens and capital requirements. This created an environment where private credit funds can lend to these businesses that might not fit the bank profile. But these businesses – like Otter Learning – need the access to capital to grow.”
Founder & CEO of Otter Learning Chase Begor shared how private credit has strengthened his business and allowed them to provide their schools’ employees better health, dental and vision insurance, 401Ks, and other benefits. “Having that private credit partner for us continues to allow us [to provide] that opportunity set for our employees, to bring new team members on, and to really focus on – at the end of the day – a higher quality education experience for our students,” he said.
Maloney said, “The other thing that a lot of people don’t understand about both private equity and private credit, is you get to partner with experts in industry. They work hand in hand with Chase, Spencer, and the team at Otter Learning to figure out how they deal with certain complexities in the marketplace. They’re looking around the corner, they’re looking at five years down the road, and they will bring in experts to help them adjust to whatever challenges they have.”
Begor added, “We talk to business owners constantly who are looking to sell or not looking to sell. But they always say, we’re starving for someone to have a conversation with about how to become better and how to improve our operations. That’s certainly what private credit and our partners have afforded us the opportunity to do.”
When asked about federal agencies’ proposed regulations targeting private credit and private equity, Rep. Beth Van Duyne (R-Texas) said, “This is my third year on the [House Committee on Small Business], and we’ve had a number of small businesses who have come to us, and they have told us firsthand, regulations are crushing us.”
Click here to view the full interview.
